Board of Directors and Corporate Governance

Haixiang Zhou; Anqi Chen; Shicheng Liao; Weiyi Wang

doi:10.54254/2754-1169/2024.26703

Advances in Economics, Management and Political SciencesOpen access

Board of Directors and Corporate Governance

Research Article

Open Access

Board of Directors and Corporate Governance

Haixiang Zhou ^1* Anqi Chen ², Shicheng Liao ³, Weiyi Wang ⁴

¹ Zhejiang University of Finance and Economics

² Zhejiang University of Finance and Economics

³ Hunan Chenzhou No.1 Middle School

⁴ Northeast Agricultural University

^*Corresponding author: 3161791996@qq.com

Published on 9 September 2025

AEMPS Vol.213

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-351-2

ISBN (Online): 978-1-80590-352-9

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Abstract

Directors in corporate boards are very important in facilitating firm strategy, monitoring management, and advising about organizational goals. A vast volume of research has gone into discovering how board composition, processes, and activities affect corporate governance and performance outcomes. In the same light, major attributes that have been studied in relation to firm-level outputs are board gender diversity, independence, skills and experience diversity, regularity of meetings, size, and cultural background of the directors. Gender diversity is positively related to board process and decision quality. Women directors bring about more engaged debates and higher levels of preparation among their male colleagues. However, empirical evidence concerning diversity and its relation to firm performance metrics—profitability and market value—has been quite mixed. Independence of the director from management is wanted to provide strength to the board's monitoring function, but no consistent correlation with improved outcomes has been found. Some firms would certainly use this inside information and expertise better than others. Functional background diversity enriches decision-making by bringing a different set of perspectives through the multi-industry experiences of directors and their respective skillsets.

Keywords:

directors, diversity, governance, gender

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References

[1]. Adams, R.B. and Ferreira, D. (2009). Women in the Boardroom and Their Impact on Governance and Performance. SSRN Electronic Journal, 94(2). https: //doi.org/10.2139/ssrn.1107721.

[3]. Bhagat, S. and Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), pp.257–273.

[4]. Conger, J. A., Finegold, D., & Lawler, E. E. (1998). Appraising boardroom performance. Harvard Business Review, 76(1), 136-148.

[7]. COLES, J., DANIEL, N., & NAVEEN, L. (2008). Boards: Does One size fit All☆. Journal of Financial Economics, 87(2), 329–356. https: //doi.org/10.1016/j.jfineco.2006.08.008

[8]. Hillman, A.J. and Dalziel, T. (2003). Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives. The Academy of Management Review, 28(3), p.383.

[12]. Carter, D.A., Simkins, B.J. and Simpson, W.G. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38(1), pp.33–53. https: //doi.org/10.1111/1540-6288.00034.

[17]. GIANNETTI, M., LIAO, G. and YU, X. (2015). The Brain Gain of Corporate Boards: Evidence from China. The Journal of Finance, 70(4), pp.1629–1682. https: //doi.org/10.1111/jofi.12198.

Cite this article

Zhou,H.;Chen,A.;Liao,S.;Wang,W. (2025). Board of Directors and Corporate Governance. Advances in Economics, Management and Political Sciences,213,48-55.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of the 4th International Conference on Financial Technology and Business Analysis

ISBN: 978-1-80590-351-2(Print) / 978-1-80590-352-9(Online)

Editor: Lukáš Vartiak

Conference website: https://2025.icftba.org/

Conference date: 12 December 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.213

ISSN: 2754-1169(Print) / 2754-1177(Online)

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