| Autor: |
Yonghoon Lee, Heejung Jung, Goldman, Jim |
| Zdroj: |
Academy of Management Annual Meeting Proceedings; 2021, Vol. 2021 Issue 1, p1-1, 1p |
| Abstrakt: |
The underrepresentation of ethnic minorities among directors of corporate boards has been widely recognized as a challenging issue for Corporate America. In this paper, we draw on a branch of social categorization theory and argue that competition threat from a foreign source enhances ethnic minority inclusion in the board by lowering existing intergroup bias. Foreign competition threat blurs the boundaries between ingroup (white directors) and outgroup (minority directors) and makes the common domestic identity and fate more salient. Leveraging the exogeneous shock that increased foreign competition threats -- that is, China's accession to the WTO in late 2001 and the predetermined industry variation in the importation costs -- we devise a difference-in-differences study where we predict that the U.S. manufacturing firms facing greater competition threats from Chinese imports are more likely to have minority directors on their boards. The results support our theory, where firms exposed to high foreign competition threats are 15% more likely to include minority directors on their board than the unconditional probability. In line with the theory, our supplementary analysis shows that those exposed firms also express more "oneness" after the shock as they increase the usage of the collective pronoun "we" in their annual report. A series of robustness tests and supplementary analyses support our theory on ethnic minority inclusion and address potential alternative explanations. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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