Climate Disaster Risk and Independent Director Turnover: Evidence From Hurricanes
研究飓风如何影响独立董事的离职决策，发现气候灾害风险反而降低离职率，董事更可能留任，且留任后公司治理和ESG表现改善。
ABSTRACT Research Question/Issue How do independent directors respond when firms face climate‐related disasters? While natural disasters expose firms to substantial operational and reputational risks, little is known about how board members react to such shocks. This study examines whether hurricanes influence independent directors' decisions to resign from corporate boards and explores the conditions under which these responses vary, as well as the consequences for firms and directors when they remain. Research Findings/Insights Drawing on 16,714 firm‐year observations of US‐listed firms from 2003 to 2020, we find that climate disaster risk is associated with lower independent director turnover. Rather than distancing themselves from affected firms, independent directors appear more likely to remain, consistent with reputational incentives and director labor market considerations. This effect is more pronounced for directors at earlier career stages, when board positions are more prestigious, when the director labor market is more competitive and when firms exhibit stronger environmental performance. The effect also increases with hurricane severity. Moreover, firms with lower independent‐director turnover after hurricanes subsequently exhibit improved governance effectiveness and ESG performance, and directors who remain during these crises are more likely to receive additional board appointments. Theoretical/Academic Implications This study contributes to the literature on climate risk and corporate governance by showing that climate disasters shape board‐level behavioral responses. It also extends the literature on director turnover by identifying natural disasters as a distinct, non‐human–driven exogenous shock that influences directors' career decisions. Practitioner/Policy Implications As climate‐related disasters become more frequent and severe, understanding how key governance actors respond to such events is increasingly important. Our findings suggest that independent directors often remain engaged with affected firms following crises, highlighting their potential role in supporting organizational resilience and governance continuity in the face of climate risk.