Academic directors and IPO initial returns

Badru, Bazeet Olayemi; Zaluki, Nurwati Ashikkin Ahmad; Hussin, Wan Nordin Wan

doi:10.1504/ijbge.2018.10016569

Cited by 2 publications

(2 citation statements)

References 78 publications

(165 reference statements)

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“…Studies on Chinese firms find that independent directors enhance the protection of minority shareholder interests (Huang & Teklay, 2021), mitigate corporate expropriation (Khan et al, 2022), prevent fraud (Xiang & Zhu, 2023), promote CSR disclosure practices (Huang et al, 2021) and are positively associated with firm performance (Huang et al, 2016). IPO returns of firms with professor‐directors are higher than those of firms without professor‐directors (Badru et al, 2018). Their purported strong sense of ethics and social responsibility leads to the assumption that professor‐directors are likely to advocate for better corporate environmental performance.…”

Section: Background Prior Literature and Research Questionsmentioning

confidence: 99%

Impact of professor‐directors on Chinese firms' environmental performance

2023

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This study investigates the impact of academic professor‐directors on Chinese firms' environmental performance. We find that the presence of board directors who are also professors has a positive impact on firms' environmental protection performance, and the result is robust after controlling for the potential endogeneity of professor‐directors. This is consistent with the notion that professor board directors are perceived to take more social responsibility and are more likely to advocate for sustainability. However, this positive impact is mitigated significantly by the presence of professor board directors with administrative titles. Moreover, the above results are mainly driven by non‐state‐owned enterprises, firms with less powerful CEOs, firms with better analyst coverage, and firms with less financial distress. Our study highlights the importance of academic directors for firms' environmental performance.

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Section: Background Prior Literature and Research Questionsmentioning

confidence: 99%

Impact of professor‐directors on Chinese firms' environmental performance

2023

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“…Audretsch and Lehmann (2006) argue that academic directors can promote firms to acquire and absorb outside knowledge to increase competition. Badru et al (2018) posit that investors perceive academic directors as intellectuals capable of providing knowledgeable skills in complex decision‐making as well as advising and monitoring the management. Indeed, Francis et al (2015) use the US firms as a sample and find that the proportion of academic directors on the board is positively associated with firm performance.…”

Section: Literature Review and Hypothesis Developmentsmentioning

confidence: 99%

Do academic directors matter? Evidence from Taiwan equity market

Lin

Ting

et al. 2023

Int Rev Finance

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In this study, we investigate the impact of academic directors on a firm's performance and decisions in the Taiwan equity market. We find that firms with more independent directors and board size are more likely to appoint academic directors, and academic directors can improve firm performance. The presence of academic directors positively affects firm performance through channels like more capital expenditure and larger R&D expenses. Academic directors with finance and technology backgrounds positively correlate with both Tobin's Q and ROA. Moreover, the appropriate match of expertise between firms and their academic directors contributes to a better performance. However, corporations with academic directors have a higher compensation gap between top managers and employees.

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Academic directors and IPO initial returns

Cited by 2 publications

References 78 publications

Impact of professor‐directors on Chinese firms' environmental performance

Impact of professor‐directors on Chinese firms' environmental performance

Do academic directors matter? Evidence from Taiwan equity market

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