Board of directors, Corporate governance, Board-size effect, Empirical legal studies
Applied Statistics | Banking and Finance | Corporation and Enterprise 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.
Published in: Journal of Financial Economics, vol. 48, issue 1 (April 1998).