Determinants of board members' financial expertise -- Empirical evidence from France
AbstractVery few countries require directors to be financially literate. This article investigates the determinants of boards' financial expertise using a sample of 95 nonfinancial French listed firms. We construct a measure of financial expertise based on educational and career background data for 943 individuals occupying 1140 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.
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Bibliographic InfoArticle provided by Elsevier in its journal The International Journal of Accounting.
Volume (Year): 44 (2009)
Issue (Month): 4 (December)
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Web page: http://www.elsevier.com/locate/inca/620179
Financial expertise Board of directors Supervisory board Corporate governance;
Other versions of this item:
- Stolowy, Hervé & Jeanjean, Thomas, 2008. "Determinants of board members’ financial expertise – Empirical evidence from France," Les Cahiers de Recherche 903, HEC Paris.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
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- Vassili Joannides & Nicolas Berland & D. T. Wickramasinghe, 2010. "Post-Hofstede diversity/cultural studies: what contributions to accounting knowledge?," Grenoble Ecole de Management (Post-Print) hal-00676570, HAL.
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