Do outsider-dominated boards and large board sizes curtail firm enterprise activities?

Graham, Michael 2006, Do outsider-dominated boards and large board sizes curtail firm enterprise activities?, in McMaster World Congress on Enhancing Corporate Governance, McMaster University, Ontario, Canada, pp. 1-18.

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Title Do outsider-dominated boards and large board sizes curtail firm enterprise activities?
Author(s) Graham, Michael
Conference name McMaster World Congress on Enhancing Corporate Governance
Conference location Ontario, Canada
Conference dates 25-27 January 2006
Title of proceedings McMaster World Congress on Enhancing Corporate Governance
Editor(s) Bart, Chris
Publication date 2006
Conference series McMaster World Congress on Enhancing Corporate Governance
Start page 1
End page 18
Publisher McMaster University
Place of publication Ontario, Canada
Keyword(s) agency theory
board of directors
board size
corporate governance
enterprise activities
Summary Recent literature recognizes the need for corporate governance to encompass mechanisms for motivating managerial behaviour towards enhancing enterprise activities or increasing wealth of the firm. Agency theory and current regulatory activity advocate increasingly greater roles for outsiders on the board of directors of publicly-traded firms. The literature also put forward that board size affect firm activities independent of other board attributes. Lipton and Lorsch (1992) also propose limiting board sizes to enhance communication and coordination on the board of directors as well as increase the ability of the board of directors to control top management of firms. This suggests that there are biases as board size grows. This paper, therefore, studies the implications of outsider-dominated board of directors and board size on firm enterprise activities. The paper finds that outsider dominated board of directors have a negative impact on firm enterprise activities. Board size was found to have a positive effect on firm enterprise activities.
Language eng
Field of Research 150201 Finance
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category E1 Full written paper - refereed
ERA Research output type E Conference publication
Persistent URL http://hdl.handle.net/10536/DRO/DU:30005921

Document type: Conference Paper
Collection: School of Accounting, Economics and Finance
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