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STEM expertise in Australian boardrooms: trends and impact on firm outcomes

Natalie Elms et al.

Journal of Accounting Literature2026https://doi.org/10.1108/jal-07-2025-0373article
AJG 3ABDC A
Weight
0.37

Abstract

Purpose Australia’s innovation performance lags other advanced economies, highlighting the need to understand how boards can better support innovation. This study aims to examine the evolving representation of directors with science, technology, engineering and mathematics (STEM) expertise on Australian corporate boards and the extent to which this representation impacts innovation investment and firm value. Design/methodology/approach Hand-collected data on director backgrounds from the top 500 Australian Stock Exchange (ASX)-listed firms are used to assess changes in board STEM representation between 2007 and 2022. Regression analysis is then employed to examine the relationship between STEM director representation, innovation investment and firm value. Findings Despite a modest increase between 2007 and 2022, the representation of STEM directors on Australian corporate boards remains low. However, firms with greater STEM board expertise are associated with higher levels of innovation investment and firm value. These effects are strongest in firms without STEM CEOs and in industries with lower STEM representation. Practical implications As firms face increasing technological complexity and opportunities, appointing directors with STEM backgrounds may offer a competitive advantage. Policies and initiatives aimed at expanding the supply of STEM directors are therefore recommended. Originality/value While director expertise is known to influence firm outcomes, limited evidence exists on how STEM expertise at the board level shapes innovation and firm value, particularly in the Australian context. This study provides new evidence on how board STEM expertise contributes to both outcomes.

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https://doi.org/https://doi.org/10.1108/jal-07-2025-0373

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@article{natalie2026,
  title        = {{STEM expertise in Australian boardrooms: trends and impact on firm outcomes}},
  author       = {Natalie Elms et al.},
  journal      = {Journal of Accounting Literature},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/jal-07-2025-0373},
}

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STEM expertise in Australian boardrooms: trends and impact on firm outcomes

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.