Professors in the Boardroom and Their Impact on Corporate Governance and Firm Performance

Bill Francis, Iftekhar Hasan, Qiang Wu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

117 Citations (Scopus)


We find that companies with directors from academia are associated with higher performance. This relation is driven by professors without administrative positions. We also find that academic directors play an important governance role through their advising and monitoring functions. Specifically, our results show that the presence of academic directors is associated with greater acquisition performance, a higher number of patents and citations, higher stock price informativeness, lower discretionary accruals, lower chief executive officer (CEO) compensation, and higher CEO forced turnover-performance sensitivity. Overall, our results indicate that academic directors are valuable advisors and effective monitors and firms benefit from having academic directors.

Original languageEnglish
Pages (from-to)547-581
Number of pages35
JournalFinancial Management
Issue number3
Publication statusPublished - 1 Sep 2015
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Professors in the Boardroom and Their Impact on Corporate Governance and Firm Performance'. Together they form a unique fingerprint.

Cite this