New kids on the block: The effect of Generation X directors on corporate performance

Zhaozhao He, Mihail K. Miletkov and Viktoriya Staneva

Journal of Empirical Finance, 2023, vol. 71, issue C, 66-87

Abstract: Generation X directors are slowly replacing Baby Boomers on U.S. corporate boards and will eventually dominate corporate boardrooms in the U.S. and around the world. We provide the first empirical evidence that the presence of Generation X directors is associated with better corporate performance. The Generation X effect is not driven by other director attributes such as sex, ethnicity, or professional expertise, and is robust to instrumental variables estimation. The result is also independent from the effect of director age which, although related to director’s generational identity, captures something fundamentally different and is controlled for in all our regressions. Finally, we document that companies with Generation X directors engage in value enhancing ESG and innovation activities and facilitate the inclusion of women on the board.

Keywords: Board structure; Board diversity; Generation X; Firm performance; Female directors; Corporate social responsibility; Corporate innovation (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:71:y:2023:i:c:p:66-87

DOI: 10.1016/j.jempfin.2023.02.001

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