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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Do corporate boards matter during the current financial crisis?, Review of Financial Economics 2; April (2012). Hasan, Iftekhar; Francis, Bill B.; Wu, Qiang

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Hasan, Iftekhar; Francis, Bill B.; Wu, Qiang 
Number of authors
Status Published
Year of publication 2012 
Date 12.04.2012 
Name of article Do corporate boards matter during the current financial crisis? 
Name of journal Review of Financial Economics
Volume of issue 21 
Number of issue 2; April 
Pages 39–52 
Abstract This study examines the impact of corporate boards on firm performance during the current financial crisis. Using buy-and-hold abnormal returns over the crisis to measure firm performance, we find that board independence, as traditionally defined, does not significantly affect firm performance. However, when we redefine independent directors as outside directors who are less connected with current CEOs, a measure we call strong independence, there is a positive and significant relationship between this measure and firm performance. Second, outside financial experts are important for firm performance. We find that the positive impact of outside financial experts on firm performance is more significant than that of strong independence. Overall, our results suggest that firm performance during a crisis is a function of firm-level differences in corporate boards.
Free text descriptor in English Financial crisis; Boards of directors; Independence; Financial experts; Firm performance 
JEL-codes G01; G30; G34 
ISSN / e-ISSN 1058-3300 
auki Internet addresses
Additional information Online first 7 March 2012
Notes BoF DP 11/2012 

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