New Kids on the Block: The Effect of Generation X Directors on Corporate Performance

48 Pages Posted: 18 Mar 2020

See all articles by Zhaozhao He

Zhaozhao He

University of New Hampshire - Department of Accounting & Finance

Mihail K. Miletkov

University of New Hampshire - Paul College of Business and Economics

Viktoriya Staneva

University of New Hampshire - Peter T. Paul College of Business and Economics

Date Written: February 18, 2020

Abstract

Generation X directors are slowly replacing Baby Boomers on U.S. corporate boards and will eventually dominate corporate boardrooms in the U.S. and around the world. We provide the first robust evidence of a significantly positive effect of Generation X directors on corporate performance. The positive effect is not driven by other director attributes such as age, sex, ethnicity, or professional expertise, and is robust to endogeneity checks using instrumental variables. Part of the improvement in firm performance can be attributed to the commitment of Generation X directors to corporate social responsibility and to the inclusion of women on corporate boards.

Keywords: Board structure, Board diversity, Generation X, Firm performance, female directors, corporate social responsibility, CSR, ESG

JEL Classification: G34

Suggested Citation

He, Zhaozhao and Miletkov, Mihail K. and Staneva, Viktoriya, New Kids on the Block: The Effect of Generation X Directors on Corporate Performance (February 18, 2020). Available at SSRN: https://ssrn.com/abstract=3540512 or http://dx.doi.org/10.2139/ssrn.3540512

Zhaozhao He

University of New Hampshire - Department of Accounting & Finance ( email )

Durham, NH 03824
United States
603-862-3355 (Phone)

HOME PAGE: http://sites.google.com/site/zhaozhaohe

Mihail K. Miletkov (Contact Author)

University of New Hampshire - Paul College of Business and Economics ( email )

10 Garrison Ave
Durham, NH 03824
United States

Viktoriya Staneva

University of New Hampshire - Peter T. Paul College of Business and Economics ( email )

NH
United States

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