Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/239373 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Risk and Financial Management [ISSN:] 1911-8074 [Volume:] 13 [Issue:] 11 [Publisher:] MDPI [Place:] Basel [Year:] 2020 [Pages:] 1-21
Publisher: 
MDPI, Basel
Abstract: 
This paper examines the effect of board characteristics, especially board independence, on firm performance from a dynamic perspective through copula-based quantile regression approaches, which allow us to focus on changes at different points in the distribution of board characteristics. We find that the effect of board independence on Tobin's Q, a proxy of firm value, is negatively associated with firm value, using ordinary least squares (OLS) regression. This negative effect using the conditional mean of the firm value does not hold across the conditional quantiles of the distribution of Tobin's Q, and this finding is still held under both the linear and the nonlinear quantile regressions. We even lessen the assumption of distributions of multivariate board variables by employing parametric copula-based quantile regressions as well as nonparametric ones. The results support our findings. Our results suggest that estimating the quantile effect of board variables on firm value can provide more meaningful insight than just examining the conditional mean effect.
Subjects: 
corporate governance
board structure
causal inference
copula based quantile regression
linear quantile regression
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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