Publication detail

Diverse boards: Why do firms get foreign nationals on their boards?

SÁGHY ESTÉLYI, K. NISAR, T.

Original Title

Diverse boards: Why do firms get foreign nationals on their boards?

Type

journal article in Web of Science

Language

English

Original Abstract

Corporate boards are the focal points for strategy and investment related firm decisions, and hence they embody the key features of production and management. In this paper, using a unique dataset of listed firms, we examine the determinants of board diversity based on directors' nationalities and ask whether the presence of foreign directors on boards contributes in some way to firm governance and performance. Our results show that boards containing diverse nationalities are positively and significantly associated with shareholder heterogeneity and the firm's international market operations. Nationality diversity is also positively related to operating performance. Moreover, as we find, institutions relating to investor engagement play an important role in influencing the nature and consequences of board diversity.

Keywords

director nationality, diversity, institutions, shareholder heterogeneity, board governance, performance

Authors

SÁGHY ESTÉLYI, K.; NISAR, T.

Released

31. 8. 2016

Publisher

Elsevier BV

Location

Amsterdam, The Netherlands

ISBN

0929-1199

Periodical

JOURNAL OF CORPORATE FINANCE

Year of study

39

Number

1

State

Kingdom of the Netherlands

Pages from

174

Pages to

192

Pages count

19

URL

https://www.sciencedirect.com/science/article/pii/S0929119916300220#ks0010

BibTex

@article{BUT169855,
  author="Kristína {Sághy Estélyi} and Tahir M. {Nisar}",
  title="Diverse boards: Why do firms get foreign nationals on their boards?",
  journal="JOURNAL OF CORPORATE FINANCE",
  year="2016",
  volume="39",
  number="1",
  pages="174--192",
  doi="10.1016/j.jcorpfin.2016.02.006",
  issn="0929-1199",
  url="https://www.sciencedirect.com/science/article/pii/S0929119916300220#ks0010"
}