Size really matters: Further evidence on the negative relationship between board size and firm value

Board diversity and firm performance: The Indonesian evidence

“…Hence, this result contradicts the findings of Yermack (1996), Eisenberg et al (1998, and Mak and Kusnadi (2005). It seems that greater number of board members would be able to provide more advice to the CEO on business strategy, particularly in large and complex firms (Coles et al, 2008;Setia-Atmaja, 2008).…”

“…Scholars have made attempts to link the diversity with different aspects within the firm, such as corporate strategic change (Goodstein et al, 1994;Wiersema and Bantel, 1992), organizational innovation (Bantel and Jackson, 1989), corporate governance , and corporate social responsibility (Coffey and Wang, 1998;Williams, 2003). In addition to a considerable number of studies in the finance and corporate governance literature that examine the relationship between board composition and firm performance, such as Eisenberg et al, (1998), Mak and Kusnadi (2005), and Yermack (1996), there are also a growing number of studies investigating the relationship between board diversity and financial performance. Such studies have been conducted in the context of a few developed countries, such as the US (Carter et al, 2003;Krishnan and Park, 2005), Canada (Francoeur et al, 2008), Spain (Campbell and Minguez-Vera, 2008), the Netherlands (Marinova et al, 2010), and Scandinavian countries (Oxelheim and Randøy, 2003).…”

The impact of board size on firm performance: evidence from the UK

“…For Switzerland, Loderer and Peyer (2002) find a significantly negative impact on Tobin's Q (although not on profitability) whilst Beiner et al (2004 and find no negative impact. For Malaysian firms, both Mak and Kusnadi (2005) and Haniffa and Hudaib (2006) find a significantly negative impact of board size on Tobin's Q. Bozec (2005) finds that board size has a significantly negative effect on sales margin but not profitability for 25 large Canadian firms.…”

Effect of Corporate Governance on Performance of Sugar Manufacturing Firms in Kenya: A Case of Sugar Manufacturing Firms in Western Kenya

“…However, conflicting results emerged on whether it is a large, rather than a small board, that is more effective. For instance, while Yermack (1996) had found that Tobin"s Q declines with board size, and this finding was corroborated by those of Mak and Kusnadi (2005) and Sanda, Mikailu and Garba (2005) which showed that small boards were more positively associated with high firm performance.…”

“…However, conflicting results emerged on whether it was a large, rather than a small board, that was more effective. For instance, while studies conducted by Yermack (1996), Mak and Kusnadi (2005), and Sanda, Mikailu and Garba (2005) found that small boards were more positively associated with high firm performance, found that larger boards enhanced shareholders" wealth more positively than smaller ones.…”