Ji, J. orcid.org/0000-0001-9533-0325, Peng, H., Sun, H. et al. (1 more author) (2021) Board tenure diversity, culture and firm risk: cross-country evidence. Journal of International Financial Markets, Institutions and Money, 70. 101276. ISSN 1042-4431
Abstract
We examine the impact of board tenure diversity on firm risk in 37 countries. Using a difference-in-differences design facilitated by corporate board reforms across the world, we find that board tenure diversity leads to lower stock return volatility. This effect is more pronounced among firms with longer board tenures, which are more likely to result in board entrenchment and weak monitoring. The positive impact of board tenure diversity on reducing firm risk is weakened in more individualistic and higher power distance cultures, due to the balancing act between group independence and cohesiveness. Further tests suggest the lower risk levels are likely due to that tenure-diverse boards tend to adopt less risky investment policies.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 Elsevier B.V. This is an author produced version of a paper subsequently published in Journal of International Financial Markets, Institutions and Money. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Board tenure diversity; firm risk; culture; individualism; power distance |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 01 Dec 2020 11:06 |
Last Modified: | 28 Jan 2022 14:40 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.intfin.2020.101276 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:168343 |
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Filename: Author Accepted Manuscript_Jiao Ji.pdf
Licence: CC-BY-NC-ND 4.0