Academic directors in board and corporate expropriation: Evidence from China

Previous studies have recognized that the presence of academic directors on the board leads to better corporate governance and accounting quality. However, studies have yet to establish the effectiveness of academic directors in mitigating corporate expropriation in emerging markets. The purpose of this study is to investigate the effect of academic directors on corporate expropriation in Chinese listed firms. It is observed that the presence of the academic director in the board mitigates earnings management and abnormal investments and enhances the dividend payments. Additionally, we find that the critical mass of academic directors curbs the expropriator managerial behavior in Chinese listed firms.