BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Talks.cam//talks.cam.ac.uk//
X-WR-CALNAME:Talks.cam
BEGIN:VEVENT
SUMMARY:Board Diversity and Rare Disasters Risk Insurance - Dunhong Jin (H
 ong Kong University Business School)
DTSTART:20220224T130000Z
DTEND:20220224T140000Z
UID:TALK161941@talks.cam.ac.uk
CONTACT:CERF/CF Admin
DESCRIPTION:About 37% of Chinese listed firms have medical expertise\, as 
 measured by the existence of senior executives with a medical degree or me
 dical-industry experience. Using the COVID-19 outbreak in China as a natur
 al experiment\, we find that stock returns of firms with medical expertise
 \, excluding those within the healthcare and pharmaceutical industry\, are
  significantly higher than firms without. This effect has a similar effect
  that financial variables such as leverage\, short-term debt\, and cash ha
 ve on the stock price. The positive impact is more pronounced if a CEO or 
 Chairman has medical expertise and if the firm is not state-owned\, or whe
 n the firm is located in a place with higher infection rates or with fewer
  public health resources. To shed light on the underlying mechanisms\, we 
 also show that senior executives with medical backgrounds enable their fir
 ms to react strategically. They have a more conservative attitude toward t
 he pandemic and advise their firms to hoard more cash. Overall\, through d
 isentangling macro shocks\, this study underlines the importance of divers
 ified executive human capital on firm performance. Even though this divers
 ity does not seem to increase firm value in normal times\, it has the pote
 ntial to insure the firm against rare disaster risks.
LOCATION:Online
END:VEVENT
END:VCALENDAR