Boardroom Diversity and Innovation in the UAE Banks

Perihan Iren, Zayed University
Kienpin Tee, Zayed University

Document Type

Article

Source of Publication

International Journal of Innovation Management

Publication Date

4-1-2018

Abstract

© 2018 World Scientific Publishing Europe Ltd. Corporate governance carries strategic importance and should be addressed correctly by decision-makers. Corporate finance literature suggests that diverse boards are a part of good corporate governance practice. However, it is not clear how diverse board characteristics might affect innovation and innovation search strategies. Utilising the data from 25 banks listed in the UAE stock exchanges, this study evaluates the impact of boardroom diversity on firm innovativeness both before and after the drop in the oil prices. The results show that although gender and education do not significantly affect innovativeness of banks, having more experienced and independent board members enhances the innovation. The effect of experienced board members on innovation is more pronounced during the oil price drop period, whereas the effect of independent board members decreases after the drop in the oil prices.

ISSN

1363-9196

Publisher

World Scientific Publishing Co. Pte Ltd

Volume

22

Issue

3

First Page

1850029

Disciplines

Business

Keywords

bank, Board diversity, corporate governance, innovation, oil crisis, UAE

Scopus ID

85028813431

Indexed in Scopus

yes

Open Access

no

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