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Title of article :
Board size and the variability of corporate performance
Author/Authors :
Cheng، نويسنده , , Shijun، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
Pages :
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Abstract :
This study provides empirical evidence that firms with larger boards have lower variability of corporate performance. The results indicate that board size is negatively associated with the variability of monthly stock returns, annual accounting return on assets, Tobinʹs Q, accounting accruals, extraordinary items, analyst forecast inaccuracy, and R&D spending, the level of R&D expenditures, and the frequency of acquisition and restructuring activities. The results are consistent with the view that it takes more compromises for a larger board to reach consensus, and consequently, decisions of larger boards are less extreme, leading to less variable corporate performance.
Keywords :
boards of directors , Corporate governance
Journal title :
Journal of Financial Economics
Journal title :
Journal of Financial Economics
Serial Year :
Link To Document :