Firm performance and board composition: Some new evidence

Abstract

HASH(0x1009eb8e0)

Board composition, board size and financial performance of Johannesburg stock exchange companies

“…The overall results, however, are consistent with the findings of earlier studies which have found no significant relationship between board composition and company performance (Rechner & Dalton, 1986;Fosberg, 1989;Daily & Dalton, 1993;Barnhart et al, 1994;Grace, Ireland & Dunstan, 1995;Dalton et al, 1998;Cho & Kim, 2007;Finegold et al, 2007). Despite the fact that studies by Fama and Jensen (1983), Baysinger and Butler (1985) and Baysinger and Hoskinsson (1990) have asserted that the effectiveness of a board depends on an optimal mix of executive and non-executive directors, the historical dearth of theory on the determinants of an optimal board composition (Hermalin & Weisbach, 2003) is also consonant with these findings.…”

“…Such measures may not bear any relationship to asset valuations, current operations or even the firm's historical profitability (Muth & Donaldson, 1998). Measures in this category include market-to-book ratio, Tobin's Q (Barnhart, Marr & Rosenstein, 1994) or constructed indices such as the Sharpe measure (Hoskisson, Johnson & Moesel, 1994).…”

The Wealth Effects Of Managerial Turnover: Implications For The Spanish Corporate Governance System

“…The mean proportion of outside Board directors is 65.64% which is similar to the 60.09% mean value registered in the US market by Barnhart et al (1994). The ownership structure clearly differs from those recorded in studies conducted in Anglo-Saxon economies.…”

Untitled

“…In addition Bernhart et al (1994), using both OLS and instrumental variables, find a curvilinear relationship between board structure and performance. In contrast, Klein (1998) …”