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Board Size and Corporate Performance: Evidence from European Countries

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>1998
<mark>Journal</mark>European Journal of Finance
Issue number3
Volume4
Number of pages14
Pages (from-to)291-304
Publication StatusPublished
<mark>Original language</mark>English

Abstract

This paper examines the effects of board size on corporate performance across a number of European economies. Agency models suggest that large boards may destroy corporate value. Our fixed effects econometric evidence demonstrates that the effect of board size on corporate performance is generally negative. A negative effect is isolated for all five European countries in question when performance is measured as return on equity; this inverse relationship is more difficult to isolate using market-based measures of performance.