Militaristic management and investment decision: an analysis of risk preference
研究了印尼上市公司中具有军事背景的董事会成员如何影响投资效率，发现军事背景能提升投资效率，尤其在投资不足和低集中度行业的企业中更明显。
Purpose This study investigates the impact of military-experienced board members on firm-level investment efficiency, focusing on Indonesian non-financial listed companies from 2011 to 2019. It integrates upper echelons and imprinting theories to explain how military backgrounds shape corporate decision-making, particularly in relation to risk preferences. Design/methodology/approach Based on 2,648 firm-year observations, this study employs fixed-effects regression to analyze the relationship between military experience and investment efficiency. To address endogeneity and ensure robustness, we apply Heckman's two-stage regression, coarsened exact matching (CEM), propensity score matching (PSM) and the generalized method of moments (GMM). Findings The results reveal a significantly positive association between military-experienced boards and investment efficiency. This effect is particularly pronounced in underinvesting firms, in firms operating in low-concentration industries, and where board commissioners have military backgrounds. The positive association is also evident in the context of R&D efficiency. Originality/value These findings suggest that appointing board commissioners with military backgrounds can enhance disciplined and context-sensitive investment decisions. However, military discipline alone may not substitute for financial expertise, underscoring the need for a balanced board composition.