2020 Fiscal Year Research-status Report
Effects of foreign directors on firm performance: Evidence from Japan.
| Project/Area Number |
19K13744
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| Research Institution | Waseda University |
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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)
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| Project Period (FY) |
2019-04-01 – 2022-03-31
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| Keywords | Foreign director / Firm performance / Corporate governance / Japan |
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| Outline of Annual Research Achievements |
This paper examines the effects of foreign directors on firm performance using a panel data of non-financial listed firms in Japan from 2004 to 2015.
We find that the effects of foreign director on firm performance are negative; ROA and Tobin’s Q of firms with foreign directors are lower than firm without.
Market reacts positively to the first introduction of foreign director but not statistically significant. In addition, a firm’s first introduction of foreign director is associated with changes in firms ownership structure or in business strategy in order to expand oversea business and strengthen corporate governance.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
I have finished the draft paper and now prepare to send it to the targeted Journal for review and publishing acceptance.
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| Strategy for Future Research Activity |
First, I am going to send the draft paper to a professional English editing firm for English correction and check.
Then, I am going to send the paper manuscript to the following Journal for reviewing and publishing opportunity: Pacific-Basin Finance Journal.
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| Causes of Carryover |
I plan to use the fund for English editing of the draft paper before submitting it to Journal
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