Age Diversity among Board Members in the Czech companies
| Authors | |
|---|---|
| Year of publication | 2018 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 6th International Conference on Management, Leadership and Governance (ICMLG 2018) |
| MU Faculty or unit | |
| Citation | |
| Keywords | age diversity; age diversity measurement; firm performance; company board; ROA |
| Description | The paper presents a basic comparison of the methods we can use to calculate age diversity among board members. Age diversity is nowadays a widely discussed topic all around word, which is also reflected in the area of corporate governance. Age diversity may have a real impact on knowledge transfer, the decision-making process and problem solving and, therefore, on the overall profitability of businesses. But researchers are still avoiding covering age diversity in their research, since there is no well-established method to express age diversity in numbers. Some authors circumvent the computation of real age diversity and use the average age instead. However, this solution cannot be considered as sufficient, so we will provide an overview of the possible methods for age-diversity measurement which have already been used in the past as well as showing some of our own suggestions. The aim of this paper is to demonstrate the age composition of executive board members in joint-stock companies from a sample of 41 Czech companies from the manufacturing industry. The paper explores the current theoretical background of diversity, especially the methods of age-diversity measurement. Afterwards, these methods are applied on the selected sample of Czech companies. The initial sample included 41joint-stock companies. The final sample consists of 39Czech companies operating in the Czech Republic. For this sample we were able to gain basic data describing the number of board members, their age as well as recently published financial statements, including EBIT and ROA. We used these indicators to evaluate the relationship between age diversity and the firm´s profitability. In particular, we want to figure out if there are any differences in our results when using various methods of age-diversity measurement. |
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