Determinants of Board Members' Financial Expertise - Empirical Evidence from France
34 Pages Posted: 14 Oct 2008
Date Written: October 14, 2008
Abstract
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.
Keywords: Financial expertise, board of directors, supervisory board, corporate governance
JEL Classification: M41, G32, G34, L84
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Stock Market Valuation of Research and Development Expenditures
By Louis K.c. Chan, Josef Lakonishok, ...
-
The Stock Market Valuation of Research and Development Expenditures
By Louis K.c. Chan, Josef Lakonishok, ...
-
The Risk and Return from Factors
By Louis K.c. Chan, J. Karaceski, ...
-
The R&D Master File Documentation
By Bronwyn H. Hall, Clint Cummins, ...
-
The Level and Persistence of Growth Rates
By Louis K.c. Chan, Jason J. Karceski, ...
-
R&D Accounting and the Tradeoff between Relevance and Objectivity
By Paul M. Healy, Stewart C. Myers, ...
-
R&D Reporting Biases and Their Consequences
By Baruch Lev, Bharat Sarath, ...
-
R&D Reporting Biases and Their Consequences
By Baruch Lev, Bharat Sarath, ...
-
Excess Returns to R&D-Intensive Firms
By Dennis J. Chambers, Ross Jennings, ...