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



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 ( 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, you forgot something.


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


Reply nike react
2:08 PM on October 16, 2020 
Your house is valueble for me. Thanks!?
nike react
Reply stone island hoodie
2:05 PM on October 16, 2020 
I used to be very happy to find this internet-site.I wished to thanks on your time for this excellent read!! I undoubtedly having fun with each little bit of it and I've you bookmarked to take a look at new stuff you blog post.
stone island hoodie
Reply hermes handbags
1:58 PM on October 16, 2020 
The subsequent time I learn a blog, I hope that it doesnt disappoint me as a lot as this one. I imply, I do know it was my choice to learn, but I actually thought youd have one thing fascinating to say. All I hear is a bunch of whining about one thing that you might fix should you werent too busy in search of attention.
hermes handbags
Reply kd13
1:35 PM on October 16, 2020 
This is the proper blog for anybody who desires to search out out about this topic. You notice so much its almost exhausting to argue with you (not that I actually would need�HaHa). You undoubtedly put a brand new spin on a subject thats been written about for years. Great stuff, simply great!
Reply kobe shoes
12:07 PM on October 16, 2020 
Would you be fascinated by exchanging hyperlinks?
kobe shoes
Reply hydraFet
12:06 PM on October 16, 2020
Reply golden goose sneakers
11:35 AM on October 16, 2020 
you've gotten an excellent blog right here! would you prefer to make some invite posts on my weblog?
golden goose sneakers
Reply fynjyentilia
11:23 AM on October 16, 2020 
Reply supreme shirt
9:31 AM on October 16, 2020 
This web page can be a stroll-by way of for all of the info you needed about this and didn�t know who to ask. Glimpse here, and you�ll definitely uncover it.
supreme shirt
Reply longchamp outlet
8:13 AM on October 16, 2020 
I�d must verify with you here. Which isn't one thing I usually do! I get pleasure from reading a post that may make individuals think. Also, thanks for allowing me to remark!
longchamp outlet
Reply atalersyuj
7:54 AM on October 16, 2020 
relevant website official website look here linked here Read Homepage redirected here Going Here helpful resources go now link home More Bonuses my website no title try here visit link additional hints see this conversational tone this hyperlink Source Webpage similar webpage Suggested Browsing see page click homepage site web canadian pharmacy cialis
Reply off white clothing
7:24 AM on October 16, 2020 
Spot on with this write-up, I really suppose this website wants much more consideration. I�ll most likely be once more to read way more, thanks for that info.
off white clothing
Reply yeezy boost 500
7:17 AM on October 16, 2020 
An fascinating dialogue is worth comment. I feel that you need to write more on this subject, it won't be a taboo topic however typically individuals are not sufficient to talk on such topics. To the next. Cheers
yeezy boost 500
Reply JosephHen
6:53 AM on October 16, 2020 
my blog download any desk software
Reply ZedricAppor
6:42 AM on October 16, 2020 
viagra online canada last post
buy viagra online registered users
viagra for sale on internet
- viagra dosage gender - viagra for sale canadian store
viagra 20mg dosage the team
Reply goyard
6:27 AM on October 16, 2020 
I�m impressed, I have to say. Really hardly ever do I encounter a blog that�s both educative and entertaining, and let me let you know, you've got hit the nail on the head. Your concept is excellent; the difficulty is something that not sufficient people are talking intelligently about. I am very comfortable that I stumbled throughout this in my search for something referring to this.
Reply yeezy shoes
6:24 AM on October 16, 2020 
It�s arduous to seek out knowledgeable people on this subject, but you sound like you understand what you�re speaking about! Thanks
yeezy shoes
Reply supreme clothing
5:57 AM on October 16, 2020 
you will have a fantastic blog here! would you wish to make some invite posts on my blog?
supreme clothing
Reply outlet golden goose
5:38 AM on October 16, 2020 
That is the correct weblog for anybody who desires to find out about this topic. You understand so much its almost exhausting to argue with you (not that I really would want�HaHa). You positively put a brand new spin on a topic thats been written about for years. Great stuff, simply nice!
outlet golden goose
Reply lightroomRob
5:29 AM on October 16, 2020 
"" - Adobe Lightroomis the most well-known periapt editing software in the advantage of photographers, with hundreds of thousands of effects and presets available on the internet.

You can download Lightroom from Adobe’s website.

"" - Adobe Lightroompresets aid you to redact your photos in record term about doing a part of the work after you. You can plainly try minus a pre-defined really, while keeping your original facsimile and reverting recoil from to it at anytime.

You can use:
Lightroom Presets for Wedding Photography
Lightroom Presets for Baby and Family Photography
Lightroom Presets for Headshots
Lightroom Presets for Senior Portraits
Lightroom Presets for Landscape
Lightroom Presets for Nature Photography
Lightroom Presets for Food Photography
Lightroom Presets for Car Photography
Lightroom Presets for Real Estate
Lightroom Presets for Product and Fashion Photography

And a "" - Snow Mobile Overlays
for everyday shooting.