On the Internationalization of Corporate Boards: The Case of Nordic Firms

This study investigates the internationalization of corporate boards, using a sample of 346 non-financial listed Nordic firms during 2001-2008. Given a high level of international activity, these firms have surprisingly few foreign directors. The picture of international expertise changes considerably, however, if we also count the international experience of national directors. The percentage of foreign directors is related primarily to financial internationalization rather than foreign sales, and thus presumably to the monitoring rather than advisory functions. The international experience of the nationals covaries with foreign sales, and increases with the share of foreign directors. Thus both sources of international expertise should be considered when analyzing board internationalization.