2019 Fiscal Year Research-status Report

Effects of foreign directors on firm performance: Evidence from Japan.

Research Project

Project/Area Number	19K13744
Research Institution	Waseda University
Principal Investigator	グエン・ティ・フォンタン早稲田大学, 商学学術院, 助手 (60791928)
Project Period (FY)	2019-04-01 – 2021-03-31
Keywords	Corporate Governance / Corporate Finance / Board diversity / Foreign Director / Firm Performance / Japan
Outline of Annual Research Achievements	We examine the effects of foreign directors on firm performance and find that the effect of foreign director on firm performance is negative; ROA and Tobin’s q of firms with foreign directors lower than firm without; market reacts positively to the first introduction of foreign director but not statistically significant.
Current Status of Research Progress	Current Status of Research Progress 1: Research has progressed more than it was originally planned. Reason The project goes on well as we has finished the empirical analysis and the draft paper.
Strategy for Future Research Activity	Now we are finalizing the result robustness check and policy implication part before sending for proofreading and journal submission.
Causes of Carryover	We planned to use for conference presentation in March 2020 but due to Covid pandemic, the conference was cancelled. So we plan to use this amount in next fiscal year for conference presentation and journal submission