Our study investigates whether having directors with IT professional experiences on board impacts a firm’s IT investment growth and financial performance. We gather data from BoardEx, Compustat, and Harte-Hanks databases for S&P 1500 firms between 2011 and 2017. We include a rich set of controls and fixed effects in the analysis. We also employ a novel strategy to adjust for the remaining selection on unobservables. Our analysis shows that firms with tech-savvy directors have higher investment growth in different categories of IT including software, hardware, communication, and services. We also find these firms experience better performance measured by Tobin’s Q. The findings highlight the importance of board of directors in driving IT investment growth and firm performance.


Paper Number 1137; Track Projects; Complete Paper



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