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Larger board size and decreasing firm value in small firms
Journal of Financial Economics · 1998 · Vol. 48(1) · pp. 35–54
Abstract
Several studies hypothesize a relation between board size and financial performance. Empirical tests of the relation exist in only a few studies of large U.S. firms. We find a significant negative correlation between board size and profitability in a sample of small and midsize Finnish firms. Finding a board-size effect for a new and different class of firms affects the range of explanations for the board-size effect.
Corporate Finance and GovernanceWorking Capital and Financial PerformanceFirm Innovation and GrowthProfitability indexBusinessValue (mathematics)Sample size determinationOn boardSample (material)AccountingEconometricsEconomicsStatistics
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