Determinants of the Size and Structure of Corporate Boards: 1935-2000
Financial Management 38, 2009
58 Pages Posted: 19 Nov 2003 Last revised: 27 Jan 2013
Date Written: November 1, 2003
We examine the determinants of the size and composition of corporate boards for a sample of 82 U.S. companies that survived during the period 1935-2000. Our hypotheses lead to predictions that firm size, growth opportunities, merger activity, and geographical expansion are important determinants of these board characteristics. We find empirical evidence that the four variables are significant determinants of the size and/or composition of boards. After controlling for these determinants of board characteristics, we find no robust relation between firm performance and either board size or composition.
Keywords: Board Size, Board Composition, Endogeneity, Firm Size, Growth Opportunities and Tangibility of Assets.
JEL Classification: G32, G34
Suggested Citation: Suggested Citation