Board diversity, firm risk, and corporate policies

• 成果类型: Article
• 署名作者: Bernile, Gennaro; Bhagwat, Vineet; Yonker, Scott
• 署名单位: University of Miami; George Washington University; Cornell University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.12.009
• 发表日期: 2018
• 页码: 588-612
• 关键词: diversity; Board of directors; governance; Firm risk; performance

摘要

We examine the effects of diversity in the board of directors on corporate policies and risk. Using a multidimensional measure, we find that greater board diversity leads to lower volatility and better performance. The lower risk levels are largely due to diverse boards adopting more persistent and less risky financial policies. However, consistent with diversity fostering more efficient (real) risk-taking, firms with greater board diversity also invest persistently more in research and development (R&D) and have more efficient innovation processes. Instrumental variable tests that exploit exogenous variation in firm access to the supply of diverse nonlocal directors indicate that these relations are causal. (C) 2018 Elsevier B.V. All rights reserved.