LARGER BOARD SIZE AND DECREASING FIRM VALUE IN SMALL FIRMS

Authors
EISENBERG T SUNDGREN S WELLS MT
Citation
T. Eisenberg et al., LARGER BOARD SIZE AND DECREASING FIRM VALUE IN SMALL FIRMS, Journal of financial economics, 48(1), 1998, pp. 35-54
Citations number
16
Categorie Soggetti
Business Finance",Economics
Journal title
Journal of financial economics → ACNP
ISSN journal
0304405X
Volume
48
Issue
1
Year of publication
1998
Pages
35 - 54
Database
ISI
SICI code
0304-405X(1998)48:1<35:LBSADF>2.0.ZU;2-J
Abstract
Several studies hypothesize a relation between board size and financia l performance. Empirical tests of the relation exist in only a few stu dies of large U.S. firms. We find a significant negative correlation b etween board size and profitability in a sample of small and midsize F innish firms. Finding a board-size effect for a new and different clas s of firms affects the range of explanations for the board-size effect . (C) 1998 Elsevier Science S.A. All rights reserved.