Board Composition as a Linkage with Environmental Change during Financial Crisis: A Case of Korean Bank Industry
Jiyeon Kim, Dong Kee Rhee, Namgyoo Park, Hyojung Kim,
This study looked into the process of a firm actively adapting to the environmental shift and generating good performances by acquiring relational capital as well as personal expertise through the board members. The effect of board composition measured, specifically focusing on personnel with political background, accounting specialists, and foreign company related personnel. The results indicate that firms under extreme environmental change actively utilize their network of board of directors, and such efforts substantially affect firm performance. The implication of this study is in that it empirically verified the relationship between board composition and firm performance based on resource.