The causal effect of board size in the performance of small and medium-sized firms

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Standard

The causal effect of board size in the performance of small and medium-sized firms. / Bennedsen, Morten; Kongsted, Hans Christian; Meisner Nielsen, Kasper.

I: Journal of Banking & Finance, Bind 32, Nr. 6, 2008, s. 1098-1109.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Bennedsen, M, Kongsted, HC & Meisner Nielsen, K 2008, 'The causal effect of board size in the performance of small and medium-sized firms', Journal of Banking & Finance, bind 32, nr. 6, s. 1098-1109. https://doi.org/10.1016/j.jbankfin.2007.09.016

APA

Bennedsen, M., Kongsted, H. C., & Meisner Nielsen, K. (2008). The causal effect of board size in the performance of small and medium-sized firms. Journal of Banking & Finance, 32(6), 1098-1109. https://doi.org/10.1016/j.jbankfin.2007.09.016

Vancouver

Bennedsen M, Kongsted HC, Meisner Nielsen K. The causal effect of board size in the performance of small and medium-sized firms. Journal of Banking & Finance. 2008;32(6):1098-1109. https://doi.org/10.1016/j.jbankfin.2007.09.016

Author

Bennedsen, Morten ; Kongsted, Hans Christian ; Meisner Nielsen, Kasper. / The causal effect of board size in the performance of small and medium-sized firms. I: Journal of Banking & Finance. 2008 ; Bind 32, Nr. 6. s. 1098-1109.

Bibtex

@article{3f8ff5106aa511dd8d9f000ea68e967b,
title = "The causal effect of board size in the performance of small and medium-sized firms",
abstract = "Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive correlation between family size and board size and show this correlation to be driven by firms where the CEO's relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having comparatively large boards of six or more members.",
keywords = "Faculty of Social Sciences, board of directors, corporate governance, privately held firms",
author = "Morten Bennedsen and Kongsted, {Hans Christian} and {Meisner Nielsen}, Kasper",
note = "JEL classification codes: G30, G32, K22",
year = "2008",
doi = "10.1016/j.jbankfin.2007.09.016",
language = "English",
volume = "32",
pages = "1098--1109",
journal = "Journal of Banking and Finance",
issn = "0378-4266",
publisher = "Elsevier",
number = "6",

}

RIS

TY - JOUR

T1 - The causal effect of board size in the performance of small and medium-sized firms

AU - Bennedsen, Morten

AU - Kongsted, Hans Christian

AU - Meisner Nielsen, Kasper

N1 - JEL classification codes: G30, G32, K22

PY - 2008

Y1 - 2008

N2 - Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive correlation between family size and board size and show this correlation to be driven by firms where the CEO's relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having comparatively large boards of six or more members.

AB - Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive correlation between family size and board size and show this correlation to be driven by firms where the CEO's relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having comparatively large boards of six or more members.

KW - Faculty of Social Sciences

KW - board of directors

KW - corporate governance

KW - privately held firms

U2 - 10.1016/j.jbankfin.2007.09.016

DO - 10.1016/j.jbankfin.2007.09.016

M3 - Journal article

VL - 32

SP - 1098

EP - 1109

JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

SN - 0378-4266

IS - 6

ER -

ID: 5520510