IDEAS home Printed from https://ideas.repec.org/a/taf/eurjfi/v22y2016i4-6p432-462.html
   My bibliography  Save this article

Board attributes and herding in corporate investment: evidence from Chinese-listed firms

Author

Listed:
  • Hong Bo
  • Tao Li
  • Yanmei Sun

Abstract

We examine whether board attributes, including board age, gender diversity, board independence, CEO duality, and board size, explain investment herding by using a panel of 1155 Chinese-listed non-financial firms during 1999--2004. Investment herding is measured by the absolute value of the difference between the investment ratio of firm i in year t and the average investment ratio of other firms in the same industry excluding firm i in year ( t −1). We find that corporate boards that have more young directors, more female directors, more independent directors, a CEO who is not the chairman of the board, and a larger board are more likely to make investment decisions closer to their peers in the same industry. We also provide evidence that investment herding is positively related to firm performance, suggesting that investment herding does not necessarily hurt shareholders in the Chinese context. We identify that herding in making investment decisions is a possible channel through which some board attributes, such as board age diversity, gender diversity, and board independence, contribute to firm performance.

Suggested Citation

  • Hong Bo & Tao Li & Yanmei Sun, 2016. "Board attributes and herding in corporate investment: evidence from Chinese-listed firms," The European Journal of Finance, Taylor & Francis Journals, vol. 22(4-6), pages 432-462, April.
    • Handle: RePEc:taf:eurjfi:v:22:y:2016:i:4-6:p:432-462
    DOI: 10.1080/1351847X.2013.788536
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1351847X.2013.788536
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1351847X.2013.788536?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Ruirui & Bo, Hong, 2023. "Growing up with the one-child policy: CEO early-life experiences and corporate investment in China," Research in International Business and Finance, Elsevier, vol. 66(C).
    2. Chang, Kai & Ding, Jiehuan & Lou, Qichun & Li, Zesheng & Yang, Jiahui, 2021. "The impact of capital leverage on green firms’ investment: New evidence regarding the size and age effects of Chinese green industries," Finance Research Letters, Elsevier, vol. 38(C).
    3. Hui Wang & Shu Xu, 2022. "Heterogeneity Effect of Corporate Financialization on Total Factor Productivity," Sustainability, MDPI, vol. 14(11), pages 1-17, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:22:y:2016:i:4-6:p:432-462. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.