Sustainable board of directors: Evidence from the research productivity of professors serving on boards in the Korean market
- Authors
- Choi, Daeheon; Chung, Chune Young; Park, Changhyeon; Young, Jason
- Issue Date
- Aug-2019
- Publisher
- MDPI AG
- Keywords
- Academic outside director; Chaebol; Corporate governance; Firm performance; Sustainable board of directors
- Citation
- Sustainability (Switzerland), v.11, no.15
- Journal Title
- Sustainability (Switzerland)
- Volume
- 11
- Number
- 15
- URI
- https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/36503
- DOI
- 10.3390/su11154247
- ISSN
- 2071-1050
2071-1050
- Abstract
- We examine the relationship between the expertise of outside directors from academia and firms' financial performance using a unique dataset on the research publications of such directors. Specifically, we use research publication history in finance or an academic concentration in business or law as a proxy for expertise and measure the influence of this expertise on Korean financial firms' short-term and long-term performance. We find a positive (negative) association between research intensity (a business or law concentration) and short-term corporate performance. Firms with greater information and agency problems appear to benefit more from research-intensive academic outside directors than other firms do. Thus, we propose that firms in emerging economies elect research-intensive academic outside directors to contribute to sustainable corporate governance and firm performance. © 2019 by the authors.
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