HMC Business Consulting, LLC

Herbert M. Chain, MBA, CPA

Independent Director, Audit Committee Chair, SOX Financial Expert, Accounting and Auditing Professional, Professor,  Consultant

Sound advice based on experience

Blog

Blog

Sending boards back to school? The effects of professors in the boardroom.

Posted on November 14, 2015 at 5:40 PM



Richard Leblanc of Boards & Advisors found and posted an academic article on LinkedIn, “Professors in the Boardroom and Their Impact on Corporate Governance and Firm Performance,” by Bill Francis, Iftekhar Hasan and Qiang Wu (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2676983). The authors’ research question was essentially whether having professors on a corporate board would enhance the performance of the board and hence the company. Specifically, they concluded that “the presence of academic directors is associated with higher acquisition performance, higher number of patents and citations, higher stock price informativeness, lower discretionary accruals, lower CEO compensation, and higher CEO forced turnover-performance sensitivity.”

 

In reading the article, it struck me that there are actually broader considerations at play here. This research is, above all else, a study resulting from the call for greater board diversity. The premise is that the skillsets and thought processes of professors positively add to board dynamics and discussions. Inherent in that consideration is that they bring a new dimension to the process – one free of past biases and groupthink tendencies. This same argument can be made as regards other groups (ethnic, gender, cultural, geographic, etc.).

 

Intuitively, I think most of us agree that having differing viewpoints and perspectives makes for more dynamic, broader and fruitful discussions and better conclusions. I often thought during my days at Deloitte that when we brought into a room a group of professionals with different perspectives honed by experience, training, culture and background, we would generally come to the right, correct decision – regardless of the issue at hand. This is quite similar, albeit focusing on the contributions of a different group.

 

As the board diversity discussion (and imperative) proceeds and matures, intuitive, legal and ethical considerations will be supplemented (and driven) by academic research. While correlation and causality in research will always be an issue, and must be carefully analyzed in reaching supportable conclusions, adding research to intuition cannot be a bad thing.

 

Categories: None

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

116559 Comments

Reply Jamesmax
8:38 PM on May 21, 2022 
Reply Wimenrog
1:36 PM on May 21, 2022 
can i buy amoxil
Reply ThomasUnmax
12:13 PM on May 21, 2022 
???????????????? ????? ???? ??? ? ????????? ????, ??????? ???????????? ??? ????, ????????? ?????????????? ????????, ????????? ? ???????? ???????????? ???????.
Reply Miaenrog
11:18 AM on May 21, 2022 
retin a discount
Reply Sueenrog
6:47 AM on May 21, 2022 
strattera 15 mg
Reply Booenrog
4:46 AM on May 21, 2022 
lisinopril 20 mg pill
Reply PhillipFleem
4:45 AM on May 21, 2022 
???????? ????????? ????? ?? ???? ?????????????? ??????????? ????????? ? ????? ?????! ? ?????? ????????-???????? «????????? ?????» ?? ??????? ????????? ????????? ???????? ????????:

???????? «???????? ??????????? ?????????»
????? ????????? «??????? ????????»
??????????? ????????? ??????? ???? «???????»
??????????? «??? ???????»
??????????? ?????????????? ????? «???????? ???»
???????? ????????? «??????»
?????? ???????? ????????? «Doctor Oil» ? ????????-???????? Aroma Crimea
???????? ???????????? ????????? «???????? ????»
????????????? ????????? «????????? ???»
???????????? ????????? «????? ????»
???????? ????? ???????? ????? «??????? ?????»
??????
???????? «???????? ???????»
??????? ????? «??????? ????????»
?? ??????? ??? ????????? ??????????? ? ???????? ????????? ????? ??? ?????? ????????,? ?????? ??????? ??????? ????????????, ??????????? ??? ??????????? ??????????? ???????? ?? ??? ?????????,????????? ????????? ?????????? ? ?????????? ?????????.
Reply WilliamRep
4:42 AM on May 21, 2022 
???????? ????? ????????????? ???? ????? ???? ?????? ??????

???????? ????? ? ???????? ??????? ????? ??????? ? ???????????

??????? ??????? ????? ?????
????? ??? ?????? ? ???????
???????? ????? ?????? ??????? ?????
????? ??????? ? ????
????? ????? ??? ????
???????? ???????? ????? ????
???????? ????? ??????
??????? ???????? ????? ??????
????? ????? ?????? ????
????? ??????? ???????? ?????????
83261_d
Reply Janeenrog
4:40 AM on May 21, 2022 
order effexor online
Reply Michaelrog
2:51 AM on May 21, 2022 
????? ??????? ???????? https://6sex6.online/ ???????? ????? ?????? ???

???????? ????? ???????? ?????? ????????? ????? ????????

????? ???? ? ????????
???????? ??? ?????
????? ???????? ?????? ????????? ????
???????? ???????? ??????? ????? ?????? ?????????
????? ?????? ?????
????? ?????? ??????? ???????
??? ???????? ?????
????? ????? ???????? ??????? ????
????? ?????? ????????
????? ??????? ??????? ??????
4326f6c
Reply Paulenrog
2:43 AM on May 21, 2022 
buy retin a
Reply Maryenrog
1:45 AM on May 21, 2022 
strattera canada
Reply Sueenrog
1:06 AM on May 21, 2022 
trazodone 1.5 mg
Reply Josephendar
11:51 PM on May 20, 2022 
Hello

It is a reality of life that you will suddenly die one day and possibly soon. So you have to find out who our savior is? Before you die and face him..

RATIONAL TEACHINGS: Since God bestowed reason and intellect on mankind, it is our duty to use it to distinguish truth from falsehood. True undistorted revelation from God must be rational and can be reasoned out by all unbiased minds.

Go to

https://internetmosque.net/saviour/index.html

and find out the TRUTH before it is too late

Piece
Reply WesleyButty
11:43 PM on May 20, 2022 
????? ????? ??????? ???? https://bananchik.top/ ????? ?????? ???

??????? ????? ???? ????? ???????? ???? ????? ??????? ??????? ???

????? ??????? ??????? ?????? ?????????
????? ???????? ??????? ????? ?????
??????? ????? ??????? ????
?????? ???????? ?????
????? ?????? ??????
????? ?????? ??????
???????? ???????? ????? ?? ???????
????? ??????? ? ???????
????? ?????? ????????????
????? ???????? ??????? ????????? ??????
6f6cd42
Reply Ivyenrog
11:09 PM on May 20, 2022 
how much is effexor
Reply Santoruist
6:29 PM on May 20, 2022 
????? ???? ?? ???? ????? ????? ??????? ?????

????? ??????? ???? ????? ?????? ?????? ??????

????? ????? ????
????? ??????? ???????
????? ??????? ???? ????????
????? ??????? ??????? ??????
??????? ????? ???????? ???
????? ?????? ?????
?????? ????? ??????
??????? ???????? ????? ??????
?????? ????? ????? ??????? ????????? ???
??????? ?????? ????? ?????
3264_55
Reply Janeenrog
4:58 PM on May 20, 2022 
ivermectin covid
Reply Ugoenrog
4:54 PM on May 20, 2022 
retino 0.025 cream
Reply Ivyenrog
3:49 PM on May 20, 2022 
tretinoin gel .05