THE DETERMINANTS OF THE PRESENCE OF INDEPENDENT DIRECTORS IN FRENCH BOARD COMPANIES

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Ibtissem Chouchene

DOI:10.22495/cocv7i3c3p2

Abstract

The purpose of this paper is to study the determinants of the presence of independent directors on boards of directors. Based on the agency theory, we study the different factors influencing the nomination of independent directors. The tests were applied to a sample of 79 companies belonging to the SBF120 index from 1999 to 2001. The results suggest that ownership concentration, the size of the company and institutional investors activism explain the presence of independent directors inside French board companies.

Keywords: Corporate Governance, Independent Directors, Ownership Structure, Agency Conflicts, Board

How to cite this paper: Chouchene, I. (2010). The determinants of the presence of independent directors in French board companies. Corporate Ownership & Control, 7(3-3), 343-352. http://doi.org/10.22495/cocv7i3c3p2