Boards of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature
Benjamin E. Hermalin
University of California, Berkeley
Michael S. Weisbach
Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER)
Economic Policy Review, Vol. 9, No. 1, April 2003
The authors identify the primary findings of the empirical literature on boards of directors. Typically, these studies have sought to answer one of the following questions: How are the characteristics of the board related to profitability? How do these characteristics affect boards' observable actions? What factors affect board makeup and evolution? Across these studies, a number of regularities have emerged - notably, the fact that board composition does not seem to predict corporate performance, while board size has a negative relationship to performance. The authors note, however, that because there has been little theory to accompany these studies, it is difficult to interpret the empirical results, particularly with respect to possible policy prescriptions.
Number of Pages in PDF File: 20
Keywords: Boards of Directors, economic literature, surveys
JEL Classification: G3, D2, L2Accepted Paper Series
Date posted: September 6, 2005
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo5 in 1.501 seconds