Board Members’ Educational Background and Financial Performance: Evidence from Eurozone Banks

Abstract This study examines the impact of quality board members’ educational background on financial performance a group Eurozone banks. Return average assets (ROAA), equity (ROAE), and Tobin’s Q are used as measures to assess bank performance. Three indices proxies for qualifications: Eduindex, all academic qualifications in areas such business or economics; Eduversal, from schools ranked by Eduniversal; EduFT, Financial Times. Our results offer relevant policy implications. Generally, there is significant negative effect Eduversal EduFT can be explained fact that some well-qualified members use their expertise own interest, which, most cases, not favourable The implication European Central Bank needs implement more rigorous than those currently imposed control member behaviour reduce agency problems.