Abstract
ABSTRACT This study examines the role of financial experts on the outside boards on firm-level employment decisions under financial stress in foreign exchange markets (FSIFX). Using firm-level data from the manufacturing industry in South Korea from 2001 through 2019, we observe in the Korean FSIFX a negative relationship with employment. We also find that including a financial expert as an outside director plays a significant role in varying the FSIFX-employment relationship. Specifically, the presence of a financial expert on the firm’s outside board contributes to reducing the negative effects of FSIFX on employment. Moreover, these findings are particularly noteworthy for firms that carry steep export ratios.
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