Variables | Description |

Panel A: Board characteristics | Ethics & Boards |

Board Size | Size of the board |

% Women | Share of women |

% Foreigners | Share of foreign directors |

% of Busy Directors | Proportion of directors who have at least one other directorship during the same year in the SBF120 index |

% of Young Directors | Proportion of directors who are less than 45 years old |

% Independent | Share of independent directors (according AFEP-MEDEF code of corporate governance) |

% Insider | Share of executive directors |

% Industry Expert | Share of industry expert directors |

% Industry Expert Independents | Proportion of industry expert independent directors |

Supervisory Board | Dummy equal to 1 if corporate governance is a two tier board |

Chair/CEO separation | Dummy equal to 1 if chairman and CEO are two distinct persons |

Panel B: Firm characteristics | Infinancials & Thomson One Bankers |

Nb employees | Number of employees |

Ownership Float | Share of ownership which is held by significant shareholders (each shareholder should hold at least 5% of the capital) |

MTBV | Market to book value |

Prox volatility | Stock volatility measures as the standard deviation of the monthly stock returns over the previous 50 months |

RDonSales | Research and development expenses on total sales |

Leverage | Leverage equal to total debt over total equity |

ROA (Return on Assets) | Equal to the ratio between EBITDA (earnings before interest, taxes, depreciation and amortization) and beginning-year total assets |

ROE (Return on Equity) | Equal to the ratio between net income and total equity |