Board of directors, Corporate governance, Board-size effect, Empirical legal studies
Applied Statistics | Banking and Finance Law | Business Organizations Law
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.
Eisenberg, Theodore; Sundgren, Stefan; and Wells, Martin T., "Larger Board Size and Decreasing Firm Value in Small Firms" (1998). Cornell Law Faculty Publications. Paper 393.
Theodore Eisenberg et al., "Larger Board Size and Decreasing Firm Value in Small Firms", 48 Journal of Financial Economics (1998)