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Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance

Board Composition and Corporate Performance: how the Australian experience informs contrasting... In many respects, Australian boards more closely approach normative “best practice” guidelines for corporate governance than boards in other Western countries. Do Australian firms then demonstrate a board demographic‐organisational performance link that has not been found in other economies? We examine the relationships between board demographics and corporate performance in 348 of Australia's largest publicly listed companies and describe the attributes of these firms and their boards. We find that, after controlling for firm size, board size is positively correlated with firm value. We also find a positive relationship between the proportion of inside directors and the market‐based measure of firm performance. We discuss the implications of these findings and compare our findings to prevailing research in the US and the UK. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Corporate Governance Wiley

Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance

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References (119)

Publisher
Wiley
Copyright
Copyright © 2003 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0964-8410
eISSN
1467-8683
DOI
10.1111/1467-8683.00318
Publisher site
See Article on Publisher Site

Abstract

In many respects, Australian boards more closely approach normative “best practice” guidelines for corporate governance than boards in other Western countries. Do Australian firms then demonstrate a board demographic‐organisational performance link that has not been found in other economies? We examine the relationships between board demographics and corporate performance in 348 of Australia's largest publicly listed companies and describe the attributes of these firms and their boards. We find that, after controlling for firm size, board size is positively correlated with firm value. We also find a positive relationship between the proportion of inside directors and the market‐based measure of firm performance. We discuss the implications of these findings and compare our findings to prevailing research in the US and the UK.

Journal

Corporate GovernanceWiley

Published: Jul 1, 2003

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