Download This PaperSize Really Matters: Further Evidence on the Negative Relationship between Board Size and Firm Value
NUS Business School Working Paper
Pacific-Basin Finance Journal (2005), Vol 13, 301-308
33 Pages Posted: 18 Mar 2002
Date Written: March 2002
Abstract
This study examines the impact of corporate governance mechanisms of Singapore and Malaysian firms on the Tobin's Q of these firms. We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q. However, consistent with Yermack (1996) and Eisenberg et al. (1998), we find that there is an inverse relationship between board size and Tobin's Q in both countries. This suggests that the negative relationship between board size and firm value transcends different corporate governance systems.
Keywords: Board size, Firm value
JEL Classification: G30, G32
Suggested Citation: Suggested Citation
Yuanto Kusnadi
Singapore Management University - School of Accountancy ( email )
60 Stamford Road
Singapore 178900
Singapore
+65 6808 5449 (Phone)
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