Board diversity and stock price crash risk

By Khalil Jebran, Shihua Chen, Ruibin Zhang. Research In International Business and Finance, 2020

125 citations recorded by the source corpus.

Abstract We show how board diversity influences stock price crash risk. By classifying board diversity into relation-oriented diversity (gender and age) and task-oriented diversity (tenure and education), we find that greater diversity on board can lower the risk of future stock crash. Additional analyses show that the effect of board diversity on future crash risk is stronger for firms with high information opacity and low institutional ownership. Overall, our findings provide new insights and suggest for more diverse boards to improve corporate governance practices.

Subfields: Accounting, Gender Studies

View Paper: https://www.semanticscholar.org/paper/3a173616bf37b1c12e07bd0432481571da7fbd5b