Independent Directors Human Capital and Firm Internationalization

This study examines the effect of independent directors? human capital (independent directors? educational level, CEO experience and international experience) on firms? decisions toward internationalization. Using a panel of electronics firms in Taiwan, the results show that independent directors? CEO experience and international experience are positively and significantly related to firm internationalization. Independent directors? educational level is positively, but not significantly, associated with firm internationalization. Boards of directors serve two important functions for firms: monitoring managers on behalf of shareholders and providing resources. By focusing on board human capital for independent directors, this study should provide a more complete understanding of how firms? internationalization decisions are influenced by board directors who serve as monitors and resource providers.