Journal
REVIEW OF MANAGERIAL SCIENCE
Volume 14, Issue 6, Pages 1251-1297Publisher
SPRINGER HEIDELBERG
DOI: 10.1007/s11846-019-00330-x
Keywords
Board size; Board independence; CEO duality; Female director; Board compensation; Corporate performance; International companies
Categories
Funding
- Spanish Ministry of Economy, Industry and Competitiveness [ECO 2017-82259-R]
- University Jaume I, Spain [UJI-B2018-15]
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The aim of our research is to analyze how board characteristics influence firm performance. In this paper, we specifically examine how board size, board independence, CEO duality, female directors and board compensation affect firm performance in a sample of international firms. The final panel data sample is composed of 10,314 firm-year observations belonging to 34 countries that have been grouped into six geographic zones: Africa, Asia, Europe, Latin America, North America and Oceania. Drawing on agency theory and dependence resource theory, we posit five hypotheses. The results show that some board characteristics, such as board size, board independence and having a female director, are positively associated with firm performance, whereas CEO duality, contrary to our expectations, also impacts positively on firm performance. Moreover, board compensation is not associated with firm performance. Tobin's Q was used to measure firm performance, although an accounting measure was also employed for robustness analyses and to provide more validity to our results.
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