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The effects of Board of Directors' education on firms' credit ratings

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Using a data set of 1,618 firms from 39 countries, we examine the influence of the educational attainment of a firm’s board of directors on its credit rating. We construct a Leadership Education Index that reflects the educational level of the key members of the board. We document, after controlling for firm and country-specific characteristics, that firms in which the key members of the board have a higher educational level are more likely to receive better credit ratings. To ensure robustness in our results, we conduct a number of analyses and tests designed to alleviate endogeneity and correct for sample bias. Our findings highlight the importance of hiring and retaining well-educated board members that are capable to manage firms and obtain better credit ratings.
Original languageEnglish
Pages (from-to)294-313
JournalJournal of Business Research
Early online date28 May 2020
Publication statusPublished - Aug 2020


  • PAPADIMITRI_2020_cright_The effects of board of directors education on firms credit ratings

    Accepted author manuscript (Post-print), 483 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 28/11/21

    Licence: CC BY-NC-ND

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