Full Citation

Title: Board Ancestral Diversity and Firm-Performance Volatility

Citation Type: Journal Article

Publication Year: 2019

ISBN:

ISSN:

DOI: 10.1017/S0022109018001035

NSFID:

PMCID:

PMID:

Abstract: We proxy for board members’ opinions and values using directors’ ancestral origins and show that diversity has costs and benefits, leading to high performance volatility. Consistent with the idea that diverse groups experiment more, firms with ancestrally diverse boards have more numerous and more cited patents. In addition, their strategies conform less to those of the industry peers. However, firms with greater ancestral diversity also have more board meetings and make less predictable decisions. These findings suggest that diversity may lead to inefficiencies in the decision-making process and conflicts in the boardroom.

Url: https://www.cambridge.org/core/product/identifier/S0022109018001035/type/journal_article

User Submitted?: No

Authors: Giannetti, Mariassunta; Zhao, Mengxin

Periodical (Full): Journal of Financial and Quantitative Analysis

Issue: 3

Volume: 54

Pages: 1117-1155

Data Collections: IPUMS USA

Topics: Other, Race and Ethnicity

Countries: