Dr. Jim YEUNG, 2014 Graduate

Yeung, J. C. K. (2018). Nonlinear Effect of Board Size on Corporate Performance: Impact of the Cultural Backgrounds of Directors in Hong Kong. Asia-Pacific Journal of Financial Studies, 47(1), 107-131. https://doi.org/10.1111/ajfs.12205

Abstract:
Our results reveal a curvilinear relationship between board size and firm performance after controlling the cultural backgrounds of directors. We demonstrate that the board size effect on performance is contingent on the cultural backgrounds of directors for firms listed in major Hong Kong exchanges. The proportion of Anglo-American directors on a board negatively moderates this effect when the board is small and positively moderates the effect when the board is large. Our findings call for appropriate board sizes for listed firms and suggest that cultural diversity can positively moderate the board size effect for large boards.