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HARP Seminar, presented by Prof Elisabeth Dedman: "Board Nationality and Firm Values"

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Event information
Date 25 January 2023
Time 12:00-13:00 (Timezone: Europe/London)
Price Free
Venue Henley Business School, Whiteknights Campus
Event types:
Webinars Seminars


We employ a sample of 3,555 firm years, spanning a 20-year period, to analyse the association between board nationality diversity and firm value. We adopt two measures of diversity: (1) diversity as variety, which is predicted and found to be positively associated with firm value; and (2) diversity as separation, which is predicted and found to be negatively associated with firm value. We argue that these countervailing effects may help to explain the equivocal results in the diversity literature. Our results are robust to different measures of diversity as variety, as well as the inclusion of a comprehensive set of control variables. In practical terms, the evidence we present indicates that, whilst board internationalisation has benefits in line with improved expertise and better decision-making, nomination committees should be mindful of the potentially harmful effects of packing the board with individuals from cultural backgrounds that are so different that communication and coordination problems within the group reduce its efficacy.

Keywords: board nationality diversity; groupthink; variety, separation; firm value.

Elisabeth Dedman

Short Bio on presenter: Elisabeth Dedman is a researcher with expertise in the areas of corporate governance, voluntary disclosure, and market-based accounting. She joined Edge Hill University in 2021 after holding positions at the Universities of Bristol, Liverpool, Manchester, Bath, Warwick, Nottingham, and Surrey. She has published in a wide range of journals, including: Accounting and Business Research; British Accounting Review; Corporate Governance: an International Review; European Accounting Review; European Journal of Finance; to name a few. Elisabeth has also been an Associate Editor for Accounting and Business Research and remains on its editorial board.

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