Board diversity and firm risk-taking in the tourism sector
Moderating effects of board independence, CEO duality, and free cash flows
Bibliographic Data
| ID | 21689221 |
|---|---|
| Authors | Ozgur Ozdemir (0000-0001-8734-9915, University of Nevada, Las Vegas, corresponding author), Ezgi Erkmen (0000-0003-4360-6822, Bogaziçi University), Fatemeh Binesh (0000-0002-8706-2401, University of Nevada, Las Vegas) |
| Year | 2022 |
| Volume | 28 |
| Issue | 7 |
| Pages | 1782-1804 |
| Publication date | 2022-11-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Tourism Economics (JOURNAL) |
| Journal identifiers | ISSN: 1354-8166 • E-ISSN: 2044-0375 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/13548166211014367 |
| OpenAlex | W3159242556 |
| Language | EN |
| Citations received | 3 |
| References cited | 72 |
This study examines the effect of board diversity on risk-taking for tourism firms and analyzes the moderating effect of board independence, CEO duality, and free cash flows in this proposed relationship. Using a composite index of board diversity and a sample of tourism firms from the US hotel, restaurant, and airline industries, we find that greater board diversity leads to lower risk-taking, measured in standard deviation of return on assets. Moreover, we report that the risk-reduction effect of board diversity is more profound when tourism firms have less board independence and less free cash flows for investments. When board diversity is decomposed into relation-oriented and task-oriented diversity attributes, we find that only the task-oriented diversity is influential in reducing firm risk-taking for tourism firms. Akin to main analysis, the board independence and free cash flows are significant moderators of the relationship between task-oriented diversity and firm risk-taking
Business · Cash flow · Economics · Free cash flow · Geography · Statistics · Tourism · Corporate Finance and Governance · Family Business Performance and Succession · Gender Diversity and Inequality · Finance
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| Citations per year | 1.5 |
|---|---|
| Citation span | 2024 - 2026 (3) |
| Highly cited | No |