Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1005197 | The International Journal of Accounting | 2009 | 25 Pages |
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.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Thomas Jeanjean, Hervé Stolowy,