Board Heterogeneity, Diversification Strategy and Firm Value

摘要

Taking nonfinancial companies listed on Shanghai or Shenzhen stock exchange as the sample, the paper studies the relationship between board heterogeneity, diversification strategy and firm value. Empirical research shows that board occupational heterogeneity is positively related to corporate diversification and firm value, whereas social heterogeneity is negatively related to them; diversification strategy works partly as a mediator between board heterogeneity and firm value. The policy implication is that effective board construction should care more about reasonable allocation of board members' social or occupational features, so as to make the fullest use of the benefits of team heterogeneity via strategic role implementation.