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.

117765 Comments

Reply hydraruzxpnew4aftFet
4:32 AM on October 16, 2020 
hydra onion
Reply yeezys
4:30 AM on October 16, 2020 
That is the appropriate blog for anybody who needs to find out about this topic. You notice a lot its virtually laborious to argue with you (not that I really would want�HaHa). You definitely put a brand new spin on a topic thats been written about for years. Great stuff, just nice!
yeezys http://www.adidasyeezysupply.com
Reply yeezys
3:52 AM on October 16, 2020 
Aw, this was a very nice post. In idea I wish to put in writing like this additionally ?taking time and precise effort to make an excellent article?however what can I say?I procrastinate alot and under no circumstances appear to get one thing done.
yeezys http://www.adidasyeezysupply.com
Reply yeezy
3:48 AM on October 16, 2020 
Your home is valueble for me. Thanks!?
yeezy http://www.yeezy-shoes.us.org
Reply kd shoes
3:48 AM on October 16, 2020 
you have got an incredible weblog right here! would you wish to make some invite posts on my blog?
kd shoes http://www.kevindurant-shoes.us.com
Reply yeezy
3:44 AM on October 16, 2020 
I�m impressed, I have to say. Actually rarely do I encounter a blog that�s both educative and entertaining, and let me let you know, you may have hit the nail on the head. Your idea is excellent; the difficulty is something that not sufficient persons are speaking intelligently about. I'm very pleased that I stumbled across this in my seek for one thing referring to this.
yeezy http://www.yeezysshoes.us
Reply jordan shoes
2:46 AM on October 16, 2020 
very good submit, i actually love this website, keep on it
jordan shoes http://www.jordan13.us.com
Reply kd shoes
2:21 AM on October 16, 2020 
There is noticeably a bundle to find out about this. I assume you made certain good factors in options also.
kd shoes http://www.kd-shoes.us
Reply nike off whtie
2:12 AM on October 16, 2020 
There are some attention-grabbing points in time in this article however I don�t know if I see all of them center to heart. There is some validity however I'll take maintain opinion until I look into it further. Good article , thanks and we want extra! Added to FeedBurner as nicely
nike off whtie http://www.nikexoffwhite.com
Reply birkin bag
1:59 AM on October 16, 2020 
Youre so cool! I dont suppose Ive learn anything like this before. So nice to search out any person with some original ideas on this subject. realy thanks for beginning this up. this web site is something that is needed on the web, somebody with a little originality. useful job for bringing one thing new to the web!
birkin bag http://www.birkinbag.us.com
Reply ptalerxmcy
1:39 AM on October 16, 2020 
This Webpage click this Click Home speaking of for beginners Full Article helpful hints Recommended Reading click homepage extra resources Recommended Webpage my explanation visit link internet site see page dig this web link Suggested Browsing cool training Visit Homepage extra resources helpful site this link Read Homepage see more cheap cialis usa
Reply jordan retro
1:27 AM on October 16, 2020 
Your home is valueble for me. Thanks!?
jordan retro http://www.retro-jordans.us.com
Reply yeezy
1:18 AM on October 16, 2020 
I�d have to check with you here. Which isn't something I normally do! I get pleasure from studying a publish that may make folks think. Also, thanks for permitting me to comment!
yeezy http://www.yeezysshoes.us
Reply supreme clothing
12:27 AM on October 16, 2020 
Good post. I study something more difficult on different blogs everyday. It should at all times be stimulating to read content material from different writers and follow a little one thing from their store. I�d prefer to use some with the content on my blog whether or not you don�t mind. Natually I�ll offer you a link in your web blog. Thanks for sharing.
supreme clothing http://www.supremeshoodie.com
Reply curry 6
12:07 AM on October 16, 2020 
I used to be more than happy to find this internet-site.I needed to thanks for your time for this glorious learn!! I positively having fun with each little little bit of it and I have you bookmarked to check out new stuff you blog post.
curry 6 http://www.curry6.net
Reply yeezy
12:03 AM on October 16, 2020 
An impressive share, I simply given this onto a colleague who was doing a bit of analysis on this. And he actually purchased me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading extra on this topic. If potential, as you turn out to be expertise, would you thoughts updating your blog with more particulars? It is extremely helpful for me. Huge thumb up for this blog publish!
yeezy http://www.adidasyeezyshoes.com
Reply balenciaga
11:58 PM on October 15, 2020 
I�d have to test with you here. Which isn't one thing I often do! I enjoy reading a post that may make people think. Also, thanks for permitting me to comment!
balenciaga http://www.balenciagas.us.com
Reply balenciaga
11:42 PM on October 15, 2020 
It�s exhausting to search out educated individuals on this subject, but you sound like you recognize what you�re talking about! Thanks
balenciaga http://www.balenciaga-sneakers.us.com
Reply kyrie irving shoes
11:34 PM on October 15, 2020 
There may be noticeably a bundle to find out about this. I assume you made certain nice points in features also.
kyrie irving shoes http://www.kyrie6.org
Reply yeezy shoes
11:30 PM on October 15, 2020 
A powerful share, I simply given this onto a colleague who was doing a bit of evaluation on this. And he in reality purchased me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to debate this, I feel strongly about it and love studying more on this topic. If doable, as you become experience, would you thoughts updating your blog with more details? It is highly helpful for me. Big thumb up for this blog put up!
yeezy shoes http://www.yeezysshoes.us