Work

The Power of Professional Expertise: Unravelling the Boardroom Diversity Puzzle Through a Machine Learning Approach

Year: 2026

Type: article

Abstract: ABSTRACT This study examines how board expertise diversity influences firm performance using a novel machine learning approach to classify directors' professional backgrounds. Drawing on data from Spanish listed firms, we develop multidimensional expertise profiles that capture multiple skills held by each director. Results show that expertise diversity enhances firm performance, particularly when measured using continuous indices, and that specific expertise types—such as financial, CEO, consulting and academic—create the greatest value. The effects vary substantially across industries, with innovation‐oriented sectors benefiting the most in contrast to more capital‐intensive sectors. These findings highlight the importance of board composition tailored to the firm context.

Source: Accounting and Finance

DOI: 10.1111/acfi.70223

Authors: Fernando Hernández‐Atienza, Juan Antonio Rodríguez‐Sanz, Benjamín Sahelices, Fernando Tejerina‐Gaite, César Vaca

Institution: Universidad de Valladolid

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,470

Funder: Ministerio de Ciencia, Innovación y Universidades