We use Blau’s index to measure board diversity (in terms of educational level and nationality). Board
interlocking is measured as the total number of board seats that each board member holds in other firms and
organizations (Wincent et al., 2010). Board size is the number of directors on the board. We measure board
independence by the number of independent directors on the board. This measurement is similar to the study
by Abeysekera (2010), which argues that the number of independent directors is better than using a
percentage when the resource dependency theory is used.