Professionals On Corporate Boards In Japan: How Do They Affect The Bottom Line?

摘要: Licensed professionals, such as accountants and lawyers, play a variety of roles when they sit on corporate boards. This paper sheds light what role professional-directors under circumstances, its consequences for performance. We develop theory that links professional (as cops, counsel, or entrepreneur) to antecedents in terms external environment (notably the extent government regulation) firm performance (profitability, valuation, stock return volatility). Using data all publicly quoted companies Japan during 2004-2015, we demonstrate presence increases profitability valuation sectors, contribute higher volatility regulated lower less industries. The differential impacts – by acting ‘entrepreneur' industries ‘cops' non-regulated have implications board composition effectiveness. provide discussion context governance reforms Japan.