Does Corporate Board Diversity Impact Disaster Preparedness? An Empirical Investigation of Corporate Reactions to Covid-19

• 발행기관: 한국APEC학회
• 저자명: Hyoseok (David) Hwang Jong Min Lee Hyun Gon Kim
• 간행물 정보: 『Journal of APEC Studies』Vol.17 No.1, 49~69쪽, 전체 21쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2025.06.30

국문 초록

This study investigates how board diversity influences firms’ disaster preparedness, using the COVID-19 crisis as a natural experiment. The pandemic highlighted the critical need for firms to prepare for large-scale disruptions. We use financial flexibility measured by cash holdings as a proxy for disaster preparation and find that firms with greater financial flexibility experienced less severe stock price declines during the market collapse in early 2020. Building on resource dependency theory, which posits that boards provide vital resources and strategic guidance to firms, we explore how board diversity shapes preparedness. Our results show that firms with more nationally and gender-diverse boards tended to increase their financial flexibility prior to the pandemic, suggesting that diverse boards offer broader perspectives and better risk foresight. In contrast, age diversity does not appear to have a significant effect. These findings underscore the advisory role of diverse boards in enhancing firm resilience to external shocks. While previous studies have linked board diversity to improved risk management, our research highlights that specific dimensions of diversity may be particularly effective in promoting disaster readiness. From a practical standpoint, this study suggests that managers should prioritize financial flexibility as a buffer against crises and that fostering board diversity can be a strategic asset. As natural and systemic disasters become more frequent and unavoidable, constituting boards with varied national and gender backgrounds may strengthen firms’ ability to anticipate and withstand future disruptions

목차

Ⅰ. Introduction

Ⅱ. Literature Review and Hypotheses Development

Ⅲ. Empirical Methodology

Ⅳ. Discussion and Conclusion

References

키워드

corporate board diversity Covid-19 pandemic disaster preparation financial flexibility