The board work experience diversity and the performance of Russian companies

Abstract

The goal of this study is to empirically assess the influence of the board of directors’ work experience diversity on the performance of Russian non-public companies. The board work experience diversity is measured by the diversity index proposed by the authors, as well as by the number of work experience types and categories. Russian boards are characterized by a low level of diversity, directors with work experience in the same company prevail, on the second and third places are the experience in other enterprises in the industry and the experience in the group of related companies. It has been established that there are no prevailing combinations of experience in industrial companies. A positive influence of the directors’ work experience diversity on the increase of companies’ return on capital from 2017 to 2019 was found. The analysis is based on the data from a 2018 survey of industrial managers conducted by the Higher School of Economics.