In their paper, Nguyen and Muniandy examine the impact of gender and ethnicity of corporate boards on stock liquidity in the context of South Africa. Using a sample of listed South African firms from 2009 to 2013, they find that firms with more female or black directors on corporate boards are associated with a higher level of stock liquidity. Interestingly, the interaction between gender and ethnic diversity on corporate boards has a negative impact on stock liquidity. This commentary highlights and discusses board diversity issues touched on and implicated by the Nguyen and Muniandy study.
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