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Board diversity and firm risk-taking in the tourism sector

Moderating effects of board independence, CEO duality, and free cash flows

Bibliographic Data

ID21689221
AuthorsOzgur 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)
Year2022
Volume28
Issue7
Pages1782-1804
Publication date2022-11-01
Open AccessYes
TypeARTICLE
VenueTourism Economics (JOURNAL)
Journal identifiersISSN: 1354-8166 • E-ISSN: 2044-0375
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/13548166211014367
OpenAlexW3159242556
LanguageEN
Citations received3
References cited72

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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Citation span2024 - 2026 (3)
Highly citedNo

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