Determinants of Board Size, Composition and Leadership
Using a 14-year panel data set on the Standard and Poor’s 1500 firms, this chapter examines the trends and determinants of corporate board structure (Board size, independence and CEO duality). Our hypotheses lead to predictions that firm complexity and advising requirements, the costs of monitoring and advising, ownership structure and CEO characteristics are important determinants of board structure. Our findings provide strong empirical evidence in support of these hypotheses. We also find some evidence that the Sarbanes–Oxley Act has had an impact on board structure and its determinants.
KeywordsBoard size Board independence CEO duality Sarbanes–Oxley act Corporate governance
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