Boards : Does one size fit all ?

  title={Boards : Does one size fit all ?},
  author={J. Coles},
  • J. Coles
  • Published 2004
  • This paper reexamines the relation between firm value and board structure. We find that complex firms, which have greater advising requirements than simple firms, have larger boards with more outside directors. The relation between Tobin’s Q and board size is U-shaped, which, at face value, suggests that either very small or very large boards are optimal. This relation, however, arises from differences between complex and simple firms. Tobin’s Q increases (decreases) in board size for complex… CONTINUE READING
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