A Balanced Scorecard for Cyber Resilience, developed by MIT Sloan Executive Education, is a starting place for discussions about how organizations can continue operations when a cyber event occurs.
It can be a tough call for boards of directors to know when to make leadership changes at companies that are in the midst of dealing with one or more crisis situations.
Purpose: The determinants that contribute to reducing stock price crash risk have garnered attention from scholars and practitioners. However, our understanding of the relationship between board diversity and stock crash risk, as well as the contextual factors that influence this relationship, remains limited. To address this gap, this study aims to investigate how different attributes of board diversity affect stock price crash risk, particularly under conditions of higher performance hazard and ownership concentration. Design/methodology/approach: Using a two-stage least squares fixed-effects estimator, the authors analyze a panel data set of 1,792 firm-year observations across 282 firms listed on the KOSPI200 from 2010 to 2019. Findings: Relation-oriented diversity reduces future stock price crash risk, particularly when firms experience performance shortfalls and have concentrated ownership structures, but task-oriented diversity has no significant effects. The results imply that o