Measurement of board diversity index
| Board diversity index | ||
|---|---|---|
| Dimensions | Operationalization | References |
| Gender diversity (GDIV) | is an indicator variable of 1 if one or more females are on a board and “0” otherwise | Ullah et al. (2020) |
| National diversity (NDIV) | coded as “1” if at least one of the board of directors from the sample company of the sample country is foreign nationals and “0” otherwise | Kouaib and Almulhim (2019) |
| Board structural diversity (BSDIV) | If the independent ratio of the board is greater than the sample median of companies in the same industry and year, it is entered as “1,” otherwise it is coded as “0.” Board’s Independent ratio is calculated as the percentage of independent directors on the board (Dang et al., 2020) | Author development |
| Board diversity index | ||
|---|---|---|
| Dimensions | Operationalization | References |
| Gender diversity (GDIV) | is an indicator variable of 1 if one or more females are on a board and “0” otherwise | |
| National diversity (NDIV) | coded as “1” if at least one of the board of directors from the sample company of the sample country is foreign nationals and “0” otherwise | |
| Board structural diversity (BSDIV) | If the independent ratio of the board is greater than the sample median of companies in the same industry and year, it is entered as “1,” otherwise it is coded as “0.” Board’s Independent ratio is calculated as the percentage of independent directors on the board ( | Author development |
Note(s): Board diversity index: The sum of the three (3) dimensions ranging from 0 to 3, the higher score indicates the greater board diversity and vice-versa
Source(s): Author development
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