Topic: Corporate Innovation: Does Diverse Board Help?

Speaker: Ting Zhang , Associate Professor, Department of Economics & Finance, University of Dayton, US

Host: Prof. HUANG Ying

Time: 10:00-11:30 September 27th, 2016 (Tuesday)

Venue: Room 602

Abstract:  Using a multi-dimensional index of board diversity, we find it is positively related to both the quantity and quality of a firm’s innovation output. Moreover, firms with diverse boards engage in more exploratory innovation with the development of new technology in unfamiliar areas. As a result, they create a greater number of breakthrough innovations as well as more failed inventions. The benefits start levelling off as diversity reaches high threshold, consistent with diversity having costs and benefits. Furthermore, the benefits are more pronounced for complex firms in competitive industries. Finally, out of the six different aspects of board diversity, professional diversity matters most for innovation.