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Understanding the Impact of Board Structure on Firm Performance: AComprehensive Literature Review

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  • Phillip C. James

    (State University of New York at Canton, School of Business and Liberal Arts.)

Abstract

There have been numerous studies which examined the impact of board structure on firm performance. However, all these studies have failed to provide any form of consensus on how board structure or board composition impact firm performance. Hence, we are left asking the question: what is the effect of board structure on firm performance? The missing link therefore, is the absence of a comprehensive review of the literature which addresses the issue. The objective of this paper is to provide a thorough analysis of previous studies with the aim of providing some direction to and closure of the debate regarding the effect of board structure on firm performance. The results of the literature review showed that there are compelling arguments on both side to eithersupport or refute the hypothesis that board structure impacts firm performance. Hence, this paper provides a new direction for researchers to take in an attempt to answer this decade-old question.

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  • Phillip C. James, 2020. "Understanding the Impact of Board Structure on Firm Performance: AComprehensive Literature Review," International Journal of Business and Social Research, LAR Center Press, vol. 10(1), pages 1-12, January.
    • Handle: RePEc:lrc:larijb:v:10:y:2020:i:1:p:1-12
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    More about this item

    Keywords

    Firm Performance; Board Composition; Board Structure; Independent Directors.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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