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Accounting for the role of culture in board directors’ dissent

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  • Chen, Shihua
  • Ye, Yan
  • Jia, Fei
  • Wang, Chengqi

Abstract

Through an eclectic cultural-institutional theoretical approach, this study explores the ways through which culture affects the likelihood of dissent occurring in corporate boardrooms, and how certain institutions influence this relationship. Our theoretical prediction is that Confucian culture has a negative impact on the probability of directors voicing dissent, but institutional constructs including state ownership, region-specific marketization, and international openness attenuate this negative effect. Our prediction is supported by data from a unique sample of Chinese listed firms over the period of 2004–2016. The study advances the literature on boards by making an important step forward in unpacking the cultural and institutional foundations of dissenting.

Suggested Citation

  • Chen, Shihua & Ye, Yan & Jia, Fei & Wang, Chengqi, 2022. "Accounting for the role of culture in board directors’ dissent," Research in International Business and Finance, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:riibaf:v:61:y:2022:i:c:s027553192200040x
    DOI: 10.1016/j.ribaf.2022.101652
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