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Title: Board structure, director expertise, and advisory role of outside directors
Authors: Chen, Shen-Syan
Chen, Yan-Shing
Kang, Jun-Koo
Peng, Shu-Cing
Keywords: Business::Finance
Issue Date: 2020
Source: Chen, S., Chen, Y., Kang, J. & Peng, S. (2020). Board structure, director expertise, and advisory role of outside directors. Journal of Financial Economics, 138(2), 483-503.
Journal: Journal of Financial Economics
Abstract: We investigate how a shock to corporate demand for experienced directors (i.e., U.S. Congress’ grant of Permanent Normal Trade Relations status to China in 2000) affects U.S. firms’ board structure and board advisory role. We find that firms appoint more outside directors with China-related experience after the grant. Firms with such directors realize higher returns around announcements of investments involving Chinese firms and better post-deal operating performance, particularly when these directors reside in the U.S. The appointment of directors with China experience is also greeted more positively by the stock market and they gain more board seats after the grant.
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2020.05.008
Schools: Nanyang Business School 
Rights: © 2020 Elsevier B.V. All rights reserved.
Fulltext Permission: none
Fulltext Availability: No Fulltext
Appears in Collections:NBS Journal Articles

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