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Board quality and the public purse: A study of government subsidies and corporate governance

Pratik Kothari et al.

Journal of Financial Research2026https://doi.org/10.1111/jfir.70046article
AJG 3ABDC A
Weight
0.50

Abstract

We develop a new measure of director quality by conducting a meta‐analysis of the leadership literature and extracting the common characteristics of experience, creativity, social capital, talent, and education. From these five characteristics we create an integrated leadership model of director quality and examine its relation to a firm's success in securing government subsidies. We find that firms with higher‐quality boards secure larger subsidy amounts and receive subsidies more consistently. We establish causality using instrumental variables and a difference‐in‐differences design exploiting the staggered adoption of Corporate Opportunities Waiver laws.

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https://doi.org/https://doi.org/10.1111/jfir.70046

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@article{pratik2026,
  title        = {{Board quality and the public purse: A study of government subsidies and corporate governance}},
  author       = {Pratik Kothari et al.},
  journal      = {Journal of Financial Research},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/jfir.70046},
}

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Board quality and the public purse: A study of government subsidies and corporate governance

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Evidence weight

0.50

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

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
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.