Abstract:
Over recent years, corporate governance has become a major and highly contentious issue
in all advanced economies, as well as in developing countries. Board size and composition
constitute two of the most prevalent corporate governance factors, attracting wide theoretical
attention. This paper examines the relationship between two of the most pertinent corporate
governance factors that is, the size of the Board of Directors and the proportion of non-executive directors and firm performance on a sample of 19 listed companies from financial sector over the period 2008-2010. Our results reveal that board size and board composition significantly impact on ROE and Tobin’s Q of the firms in financial sector. Further there is a negative relationship between the board size and firm performance but the positive relationship between board composition and the firm performance.
