Aaltodoc publication archive (Aalto University institutional repository)
School of Business | Department of Finance | Finance | 2016
Thesis number: 14710
Board of Diretor Education and Firm Performance: a Dynamic Approach
|Title:||Board of Diretor Education and Firm Performance: a Dynamic Approach|
|Year:||2016 Language: eng|
|Department:||Department of Finance|
|Index terms:||rahoitus; corporate governance; tulos; johtajat; koulutus|
» hse_ethesis_14710.pdf size:2 MB (1283633)
|Key terms:||corporate governance, firm performance, endogeneity,|
I examine the relationship between board of director's (BoD) education and firm performance on a European dataset over the period from 1999 to 2013, employing a well-developed dynamic panel generalized method of moments (GMM) estimator to alleviate endogeneity issue in corporate governance study. I find no correlation between BoD education and firm's return on asset, after accounting for endogeneity issues. All else equal, firms with better educated board of director may appear to have better performance in the short-run, but that superiority will likely to reverse in the future.
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