Director Skill Sets

Adams, Renée, Akyol, Ali C. and Verwijmeren, Patrick (2018) Director Skill Sets. Journal of Financial Economics, 130 (3). pp. 641-662.

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Directors are not one-dimensional. We characterize their skill sets by exploiting Regulation S-K’s 2009 requirement that U.S. firms must disclose the experience, qualifications, attributes or skills that led the nominating committee to choose an individual as a director. We then examine how skills cluster on and across boards. Factor analysis indicates that the main dimension along which boards vary is in the diversity of skills of their directors. We find that firm performance increases when director skill sets exhibit more commonality.

Item Type: Article
Keywords: Directors; Qualifications; Expertise; Skills; Board effectiveness; Regulation S-K; Diversity, finance
Subject(s): Finance
Date Deposited: 09 Oct 2018 10:45
Last Modified: 06 Dec 2018 12:01
Funders: N/A

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