Do outside directors influence the financial performance of risk-trading firms? Evidence from the United Kingdom (UK) insurance industry

Mike Adams and Wei Jiang

Journal of Banking & Finance, 2016, vol. 64, issue C, 36-51

Abstract: We examine the relation between outside board directors and six measures of financial performance using panel data for 1999–2012 drawn from the UK’s property-casualty insurance industry. We find that the proportion of outsiders on the board is unrelated to performance; rather it is outsiders’ financial expertise that has the most significant financial performance impact. In addition, superior performance can also be related to the financial expertise of inside directors, thereby reinforcing the importance of board-level financial expertise in the insurance industry. Our results have potential commercial and/or policy implications.

Keywords: Outside directors; Financial performance; Insurance; United Kingdom (search for similar items in EconPapers)
JEL-codes: G22 G3 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:64:y:2016:i:c:p:36-51

DOI: 10.1016/j.jbankfin.2015.11.018

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