The Impact Of Cultural Diversity Of Board Of Directors On Corporate Governance

The development of society has brought people's attention to informal system and its impact on economic development and corporate governance.And managers are increasingly concerned about the impact of corporate culture.On the one hand,as the most important decision-making group in the company,the board of directors plays a decisive role in making important strategic decisions.On the other hand,as an important component of the executive team,the board culture directly affects the construction of corporate culture and the company's operating performance.Most of the existing studies are based on the theory of high-level echelon,discussing the relationship between the personal background characteristics of board of directors or executives,the heterogeneity of personal characteristics and corporate performance,investment behavior,corporate social responsibility and other corporate governance issues.Few studies take board culture as a breakthrough point.Therefore,this paper constructs an index to measure the cultural diversity of the board directors at the corporate level,and studies the impact of the cultural diversity of the board directors on corporate governance-related issues.Based on the five-dimensional cultural framework of Hofstede,this paper makes a quantitative analysis of the cultural dimensions of the board of directors,and constructs a dynamic and continuous index to measure the cultural diversity of the board of directors at the corporate level by using the method of coefficient of variation.And our research object is A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2008 to 2016.Firstly,this paper examines the impact of cultural diversity of board of directors on corporate performance,and further explores the mechanism of cultural diversity of board of directors on corporate performance from a cost perspective.This paper also studies the impact of cultural diversity of board of directors on corporate investment efficiency and corporate social responsibility,and further studies the various dimensions of board culture on corporate investment efficiency and corporate social responsibility.Ren's influence.The research shows that the increase of cultural diversity of the board of directors will improve the management efficiency of the company,thereby reducing the cost of the company and improving the performance of the company.At the same time,cultural diversity of the board of directors has a significant positive impact on the efficiency of corporate investment and corporate social responsibility,but different cultural dimensions have different impacts.This paper enriches the research vision and achievements of board of directors and corporate governance,and provides decision-making reference for companies to introduce diverse board members.