Determinants of Board Members' Financial Expertise - Empirical Evidence from France
ESSEC Business School
HEC Paris - Accounting and Management Control Department
October 14, 2008
Very few countries require directors to be financially literate. This article investigates the determinants of boards' financial expertise using a sample of 95 non-financial French listed firms. We construct a measure of financial expertise based on educational and career background data for 943 individuals occupying 1,140 posts in our sample and explore the determinants of average per-firm financial expertise using a Tobit analysis. We find that average financial expertise is negatively associated with board type (two-tier versus one-tier) and growth opportunities and positively associated with board independence, ownership concentration, and institutional ownership. These findings are robust to sensitivity analyses.
Number of Pages in PDF File: 34
Keywords: Financial expertise, board of directors, supervisory board, corporate governance
JEL Classification: M41, G32, G34, L84working papers series
Date posted: October 14, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.578 seconds