Do Military Independent Directors Improve Firm Performance?

Zhe Li and Megan Rainville

Finance Research Letters, 2021, vol. 43, issue C

Abstract: Characteristics and experiences of directors can affect firm performance. In this study, we examine the relationship between independent director military service and Tobin's Q. The impact of a director's military experience on firm value is increasingly important as corporations target military veterans for board seats. We find firms with independent directors with military experience tend to have poor firm performance. We explore R&D as a possible channel for the reduction in firm value and find firms with military independent directors also invest less in R&D. Overall, our findings suggest that past military service of directors does not improve firm performance.

Keywords: Military executives; Investment; R&D; Corporate governance; Firm Performance (search for similar items in EconPapers)
JEL-codes: G30 G31 G34 J24 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000696

DOI: 10.1016/j.frl.2021.101988

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