Lecturer：Ying Huang（Zhejiang University）
Topic: Corporate Governance and Risk-taking of Chinese Firms: The Role of Board Size
Time：Jun, 27th, 15：30-17：00
Venue：Boxue 1120
Abstract: The corporate governance reform in China offers an interesting context for investigating the systematic relationship between board size and firm’s risky policy choices. Our results indicate that firms with smaller boards are associated with higher executive pay-to-performance sensitivity. These firms also tend to pursue riskier investment policies, engage more frequently in earnings management, and experience larger variability in future firm performance. However, Chinese firms with smaller-sized boards are found to be more conservative in using debt financing. Overall, our Chinese evidence is consistent with the hypothesis that board size has negative impacts on firm risk-taking.