On the Internationalization of Corporate Boards

46 Pages Posted: 26 Jan 2013 Last revised: 21 Jun 2014

See all articles by Lars Oxelheim

Lars Oxelheim

Research Institute of Industrial Economics (IFN); University of Agder; Knut Wicksell Center for Financial Studies, Lund University

Aleksandra Gregoric

Copenhagen Business School

Trond Randøy

University of Agder - School of Management

Steen Thomsen

Copenhagen Business School

Date Written: January 19, 2013

Abstract

Despite the global reach of their commercial activities, many multinational firms have proved slow in internationalizing their boards of directors. Based on a panel study of the internationalization of the boards of 347 non-financial firms from the Nordic countries, we find a higher fraction of international board membership in firms with more foreign sales, in firms with more foreign ownership and in firms whose shares are traded on foreign (mostly European) stock exchanges. Moreover, we find international directors and national directors with international experience complementary. The first-mentioned group is found to serve a monitoring role, related to financial internationalization of the firm, whereas the latter category fills an advisory role related to commercial internationalization. Hence, different types of firm internationalization – commercial versus financial – might call for different types of board internationalization.

Keywords: internationalization, international directors, international board experience, board composition, nomination committee, corporate governance

JEL Classification: F23, G30, G34, L22, M16

Suggested Citation

Oxelheim, Lars and Gregoric, Aleksandra and Randøy, Trond and Thomsen, Steen, On the Internationalization of Corporate Boards (January 19, 2013). IFN Working Paper No. 951. Available at SSRN: https://ssrn.com/abstract=2206891 or http://dx.doi.org/10.2139/ssrn.2206891

Lars Oxelheim (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
SE-10215 Stockholm
Sweden
+46 8 665 4527 (Phone)
+46 8 665 4599 (Fax)

University of Agder ( email )

Serviceboks 422
N-4604 Kristiansand, VEST AGDER 4604
Norway

Knut Wicksell Center for Financial Studies, Lund University ( email )

P.O.Box 7080
S-220 07 Lund
Sweden
+46462228744 (Phone)

Aleksandra Gregoric

Copenhagen Business School ( email )

Porcelænshaven 24
Frederiksberg C, DK - 2000
Denmark

Trond Randøy

University of Agder - School of Management ( email )

Adger Research Foundation
Serviceboks 422 Bygg H
N-4604 Kristiansand
Norway
47 3814 1027 (Phone)

Steen Thomsen

Copenhagen Business School ( email )

Porcelaenshaven 24A
Copenhagen, 2000
Denmark
+45 38152590 (Phone)
+45 38152500 (Fax)

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