Re-examining Board Reforms and Firm Value: Response to “How Much Should We Trust Staggered Differences-In-Differences Estimates?” by Baker, Larcker, and Wang (2021)
The last few decades have seen an explosion of corporate board reforms. Fauver, Hung, Li, and Taboada (2017, “FHLT”) examine the impact of board reforms on the value of firms in 41 countries from 1990 to 2012. Using staggered difference-in-differences (“DiD”) estimates, FHLT find that firm value increases after board reforms. However, the robustness of these results is contested by Baker,… Read More »
