Dissertations, Theses, and Capstone Projects
Date of Degree
9-2026
Document Type
Doctoral Dissertation
Degree Name
Doctor of Philosophy
Program
Business
Advisor
Kalin Kolev
Advisor
Xi Dong
Committee Members
Xiumin Martin
Edgar Rodriguez-Vazquez
Subject Categories
Business
Keywords
Board of directors, Skill, Diversity, Equity risk, Advising and monitoring, Corporate governance
Abstract
This study examines the relation between board skill diversity and firm risk. Using skill-related keywords from proxy-statement director biographies, I construct a board skill diversity measure that captures the distribution of directors’ skills across multiple categories. Board skill diversity is associated with lower total risk and idiosyncratic risk, with no significant evidence of an association with systematic risk. The relation depends on whether directors’ expertise aligns with relevant governance problems. Advising skill diversity is associated with lower risk on average and more strongly so when advising demand is high, while monitoring skill diversity becomes risk-reducing only when monitoring demand is high. The risk-reducing association is concentrated in functional skill diversity rather than experience diversity and remains after controlling for inherited diversity. Additional analyses examine measurement validity, cross-sectional variation, future risk, firm value, operating performance, equity returns, and who contributes to board skill diversity. Overall, this study conceptualizes board skill diversity as a task-relevant expertise structure and shows that its risk relevance depends on the fit between directors’ expertise and firms’ risk-oversight needs.
Recommended Citation
Chang, Yanru, "Board Skill Diversity and Firm Risk" (2026). CUNY Academic Works.
https://academicworks.cuny.edu/gc_etds/6884
