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Director Characteristics and Firm Performance

Gantenbein, Pascal and Volonté, Christophe. (2011) Director Characteristics and Firm Performance. WWZ Discussion Papers, 2011 (11).

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Official URL: https://edoc.unibas.ch/61216/

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Abstract

The traditional methodology examining optimal boards relates a simple board variable (e.g. independence or board demography) to firm performance, however, ig- noring other board characteristics. This paper investigates how the education and business experience of directors affect firm performance. The sample consists of 1,574 directorships from 224 listed firms in Switzerland. Using OLS and including control variables, the results show that graduates of minor Swiss universities are negatively related to Tobin’s Q, and industrial knowledge and Tobin’s Q are nega- tively correlated if the firm has more divisions. In addition, director fixed effects (or unobserved characteristics) are significant, but improve the explanatory power of the models only by 5 percent.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Finanzmanagement (Gantenbein)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Volonté, Christophe and Gantenbein, Pascal
Item Type:Working Paper
Publisher:WWZ, University of Basel
Number of Pages:29
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2011/11
Last Modified:15 Mar 2018 10:59
Deposited On:07 Mar 2018 10:46

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