Does board ethnic diversity mitigate bankruptcy risk?

被引:0
|
作者
Cho, Eunho [1 ]
Joo, Mohammad Hashemi [2 ]
机构
[1] North Carolina A&T State Univ, Dept Accounting & Finance, Greensboro, NC USA
[2] Calif State Univ, Dept Finance & Law, Los Angeles, CA 90032 USA
关键词
Board ethnic diversity; Board diversity; Bankruptcy; Minority directors; CORPORATE SOCIAL-RESPONSIBILITY; FIRM; GOVERNANCE; PERFORMANCE; DIRECTORS; FRAMEWORK; LEVERAGE;
D O I
10.1016/j.irfa.2024.103588
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We investigate the relationship between the ethnic diversity of corporate boards, measured by the ratio of minority directors, and bankruptcy risks among manufacturing firms included in S&P 1500. Our findings indicate that companies with a higher representation of minority directors on their boards demonstrate decreased bankruptcy risks compared to companies with lower levels of minority board diversity. This study implies that boards with diverse ethnic backgrounds are better equipped to make balanced decisions and manage bankruptcy risks.
引用
收藏
页数:9
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