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Despite extensive research on international corporations, there is still a lack of understanding about the factors that influence the composition of their board and its impact on their market value. This study aims to investigate how internationalisation influences the diversity of a firm's board, particularly regarding gender and culture. Additionally, the study also explores whether the board's diversity can enhance the impact of internationalisation on a firm's value. We analysed data from 25,436 international companies and found that as companies become more international, they tend to have fewer women on their boards but more board members from other countries. Interestingly, having a more diverse gender composition on the board helps to increase a company's value when it becomes more international, but having a more diverse cultural composition on the board seems to have the opposite effect. This information is helpful for international companies who want to make sure they have the best composition on their boards to achieve their global goals. These findings suggest that there may be a difference between what international corporations want in their board members and what their shareholders expect. Ultimately, this study can help international companies choose the right board members to maximize their success.
Kuzey et al. (Tue,) studied this question.