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Board internationalization, supervisory board structure, and corporate legal risks

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  • Gu, Rui
  • Liu, Junmei
  • Tang, Yitian

Abstract

This study focuses on the relationship between board internationalization (BI) and corporate legal risk and finds that introducing foreign directors strengthens the legal risk prevention and control by optimizing the supervisory board structure. For firms with different property rights, non-state-owned enterprises have higher sensitivity to BI relative to state-owned enterprises, reducing corporate legal risks. Findings offer crucial theoretical underpinnings and practical insights for improving corporate governance and formulating effective policies.

Suggested Citation

  • Gu, Rui & Liu, Junmei & Tang, Yitian, 2025. "Board internationalization, supervisory board structure, and corporate legal risks," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004891
    DOI: 10.1016/j.frl.2025.107226
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    References listed on IDEAS

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