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.
Results reveal that board size and board composition significantly impact on
return on equity and Tobin 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.
