Examining the Nexus Between Leadership Architecture and Shareholder Return of Publicly Listed Corporations in South Africa
DOI:
https://doi.org/10.51137/wrp.ijarbm.397Keywords:
Leadership Architecture, Shareholder Return, Female Directors, Panel Data AnalysisAbstract
This study examines the impact of leadership architecture on shareholder return, measured by earnings per share, in 69 Johannesburg Stock Exchange-listed corporations over 2015–2021. Using McGregor BFA audited financial reports and employing a two-step System GMM model, the study finds that Black directors and White directors positively influence shareholder return, supporting Resource Dependence Theory. In contrast, Black female directors and White female directors negatively affect returns, consistent with Tokenism Theory. These results highlight the nuanced interplay of race and gender in leadership architecture and its effect on corporate performance. The findings offer valuable insights for board composition and diversity policies in publicly listed corporations in South Africa, contributing to the understanding of how leadership diversity shapes shareholder value in the South African corporate context.
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