Board diversity in family and non-famiy firms: a comparative analysis with a "true" diversity measure and the role of mediators.

Although board diversity is often unconditionally considered to be a beneficial practice, its relationship with firm performance appears to be more nuanced. We study the impact diversity in family firms vs. non-family firms. In doing so, we propose to compute a diversity measure that takes into account directors‟ family membership and to study the mediating role of firm reputation and innovation in the board diversity – firm performance relationship. As opposed to extant research, we analyze the impact of board diversity on firm performance both in terms of both "innate" and "acquired" director characteristics and thus view it much broader than merely gender diversity.

Keywords:CORPORATE GOVERNANCE, FAMILY FIRMS, BOARD OF DIRECTORS

Disciplines:Management, Demography