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

Wei Huang and Belaynesh Teklay

Finance Research Letters, 2021, vol. 39, issue C

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.

Keywords: Academic independent directors; Agency costs; Investment; China (search for similar items in EconPapers)
JEL-codes: G3 M4 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:39:y:2021:i:c:s1544612320302828

DOI: 10.1016/j.frl.2020.101590

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