Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123420
Authors: 
Gantenbein, Pascal
Volonté, Christophe
Year of Publication: 
2011
Series/Report no.: 
WWZ Discussion Paper 2011/11
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.
Subjects: 
Corporate governance: Board of directors
Director characteristics
Education and business experience
JEL: 
G30
G34
G38
Document Type: 
Working Paper

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