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Journal Articles International Journal of Accounting Year : 2009

Determinants of Board Members Financial Expertise - Empirical Evidence from France

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.

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hal-00491688 , version 1 (14-06-2010)

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Hervé Stolowy, Thomas Jeanjean. Determinants of Board Members Financial Expertise - Empirical Evidence from France. International Journal of Accounting, 2009, Vol.44, nº4, pp.378-402. ⟨10.1016/j.intacc.2009.09.002⟩. ⟨hal-00491688⟩

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