The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping financial performance of European companies operating services sector. We exploit data selected from Thomson Reuters Eikon database 2020 for last fiscal year 2019 (FY0) on a longitudinal sample 144 with head offices Europe (25 countries). Following an original empirical approach based two modern econometric techniques, namely structural equation modelling (SEM) network analysis through Gaussian graphical models (GGMs), research endeavor outlines decisive importance optimal size, enhanced skills, upward gender diversity (encompassed women participation management), structure (mainly two-tier type, one board, distinctive supervisory board) as fundamentals strategies, leading to improved achievements higher profitability analyzed companies.