Document Type

Article

Publication Date

4-1998

Keywords

Board of directors, Corporate governance, Board-size effect, Empirical legal studies

Disciplines

Applied Statistics | Banking and Finance Law | Business Organizations Law

Abstract

Several studies hypothesize a relation between board size and financial performance. Empirical tests of the relation exist in only a few studies of large U.S. firms. We find a significant negative correlation between board size and profitability in a sample of small and midsize Finnish firms. Finding a board-size effect for a new and different class of firms affects the range of explanations for the board-size effect.

Publication Citation

Theodore Eisenberg et al., "Larger Board Size and Decreasing Firm Value in Small Firms", 48 Journal of Financial Economics (1998)

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