Article ID Journal Published Year Pages File Type
5088345 Journal of Banking & Finance 2016 16 Pages PDF
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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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