Director skill sets

Adams, R. B., Akyol, A. C. and Verwijmeren, P. (2018) Director skill sets. Journal of Financial Economics, 130(3), pp. 641-662. (doi: 10.1016/j.jfineco.2018.04.010)

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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:Articles
Glasgow Author(s) Enlighten ID:Verwijmeren, Professor Patrick
Authors: Adams, R. B., Akyol, A. C., and Verwijmeren, P.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Journal of Financial Economics
ISSN (Online):1879-2774
Published Online:05 May 2018
Copyright Holders:Copyright © 2018 Elsevier B.V.
First Published:First published in Journal of Financial Economics 130(3):641-662
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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