Determinants of board members' financial expertise -- Empirical evidence from France

Thomas Jeanjean and Hervé Stolowy (stolowy@hec.fr)

The International Journal of Accounting, 2009, vol. 44, issue 4, 378-402

Abstract: Very 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.

Keywords: Financial; expertise; Board; of; directors; Supervisory; board; Corporate; governance (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Determinants of Board Members Financial Expertise - Empirical Evidence from France (2009)
Working Paper: Determinants of Board Members Financial Expertise - Empirical Evidence from France (2009)
Working Paper: Determinants of board members' financial expertise - Empirical evidence from France (2009)
Working Paper: Determinants of board members’ financial expertise – Empirical evidence from France (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:accoun:v:44:y:2009:i:4:p:378-402

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