Are academic independent directors punished more severely when they engage in violations?

We use a sample of Chinese A-share listed companies from 2003 to 2013 to explore the reputation damage and overflow effect of academic independent directors who have received supervisory punishment. We find that when companies violate information disclosure rules, the market punishes academic independent directors more severely than nonacademic independent directors for these violations. Furthermore, companies employing punished academic directors face greater declines in their stock price than companies employing punished nonacademic independent directors during a relatively short window before or after the punishment is announced. The punishment of academic independent directors influences the employment of other scholars in the same field and results in a negative overflow effect. This study provides evidence of the market's differential reactions to independent directors with different backgrounds; the findings reflect the double-edged sword of one individual's reputation on organizations.

The relevance of James Lovelock’s research and philosophy to environmental science and academia

James E.Lovelock,famed for his Gaia hypothesis,which views the Earth as a living integrated and interconnected self-regulating system whose equilibrium comes about from complex energy-based interactions and feedback loops,ultimately sustaining life,passed away at the end of July,2022 at the age of 103.Not only are the adaptive mechanisms of Gaia central to the conversation of environmental homeostasis,they lie at the heart of climate change and global warming.Lovelock is also remembered as the co-inventor of the electron capture detector that eventually allowed for the sensitive detection of chlorofluorocarbons and pesticides.Finally,Lovelock’s free-spirited nature and research independence allow academia to rethink current research’s modus operandi.