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

See all articles by Sukesh Patro

Sukesh Patro

Northern Illinois University

Kenneth Lehn

University of Pittsburgh - Finance Group

Mengxin Zhao

Securities and Exchange Commission (SEC)

Date Written: November 1, 2003

Abstract

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

Patro, Sukesh and Lehn, Kenneth and Zhao, Mengxin, Determinants of the Size and Structure of Corporate Boards: 1935-2000 (November 1, 2003). Financial Management 38, 2009, Available at SSRN: https://ssrn.com/abstract=470675 or http://dx.doi.org/10.2139/ssrn.470675

Sukesh Patro

Northern Illinois University ( email )

236P Barsema Hall
DeKalb, IL 60115
United States
8157531354 (Phone)

Kenneth Lehn (Contact Author)

University of Pittsburgh - Finance Group ( email )

372 Mervis Hall
Pittsburgh, PA 15260
United States
412-648-2034 (Phone)

Mengxin Zhao

Securities and Exchange Commission (SEC) ( email )

450 Fifth Street, NW
Washington, DC 20549-1105
United States

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