Business Professors in the Boardroom: Can they walk-the-talk?

Wei Huang; Belaynesh Teklay

doi:10.1016/j.frl.2020.101590

Business Professors in the Boardroom: Can they walk-the-talk?

Wei Huang, Belaynesh Teklay

Research output: Journal Publication › Article › peer-review

7 Citations (Scopus)

Abstract

This paper explicitly tests the influences of Business Professor Independent Directors (BPIDs) on firm agency costs and investment efficiency using the Chinese setting. We reveal that BPIDs enhance minority shareholder protections from the controlling shareholder-manager coalition at the cost of firm investment efficiency. These findings are in line with BPIDs’ high ethical standards and reputational concerns but lack of industry experience.

Original language	English
Article number	101590
Journal	Finance Research Letters
Volume	39
DOIs	https://doi.org/10.1016/j.frl.2020.101590
Publication status	Published - Mar 2021

Keywords

Academic independent directors
Agency costs
China
Investment

ASJC Scopus subject areas

Finance

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10.1016/j.frl.2020.101590

Cite this

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title = "Business Professors in the Boardroom: Can they walk-the-talk?",

abstract = "This paper explicitly tests the influences of Business Professor Independent Directors (BPIDs) on firm agency costs and investment efficiency using the Chinese setting. We reveal that BPIDs enhance minority shareholder protections from the controlling shareholder-manager coalition at the cost of firm investment efficiency. These findings are in line with BPIDs{\textquoteright} high ethical standards and reputational concerns but lack of industry experience.",

keywords = "Academic independent directors, Agency costs, China, Investment",

author = "Wei Huang and Belaynesh Teklay",

note = "Publisher Copyright: {\textcopyright} 2020 Elsevier Inc.",

year = "2021",

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journal = "Finance Research Letters",

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AB - This paper explicitly tests the influences of Business Professor Independent Directors (BPIDs) on firm agency costs and investment efficiency using the Chinese setting. We reveal that BPIDs enhance minority shareholder protections from the controlling shareholder-manager coalition at the cost of firm investment efficiency. These findings are in line with BPIDs’ high ethical standards and reputational concerns but lack of industry experience.

KW - Academic independent directors

KW - Agency costs

KW - China

KW - Investment

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VL - 39

JO - Finance Research Letters

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ER -

Business Professors in the Boardroom: Can they walk-the-talk?

Abstract

Keywords

ASJC Scopus subject areas

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