Board tenure diversity, culture and firm risk: Cross-country evidence

We examine the impact of board tenure diversity on firm risk in 37 countries. Using a difference-in-differences design facilitated by corporate reforms across world, we find that leads to lower stock return volatility. This effect is more pronounced among firms with longer tenures, which are likely result entrenchment and weak monitoring. The positive reducing weakened individualistic higher power distance cultures, due balancing act between group independence cohesiveness. Further tests suggest levels tenure-diverse boards tend adopt less risky investment policies.