Board Composition And Financial Performance: A Meta-Analysis Of The Influence Of Outside Directors

Given the existence of conflicting theoretical perspectives and inconsistent empirical results, this study examined the relationship between board composition (insider/outsider ratios) and organizational performance. A meta-analysis was conducted and results indicate that both insider-and outsider-d...

Full description

Saved in:
Bibliographic Details
Published inJournal of managerial issues Vol. 12; no. 1; pp. 76 - 91
Main Authors Rhoades, Dawna L., Rechner, Paula L., Sundaramurthy, Chamu
Format Journal Article
LanguageEnglish
Published Pittsburg Pittsburg State University 01.04.2000
Pittsburg State University, Department of Economics
Subjects
Boards of directors
Business management
Chief executive officers
Corporate governance
Corporate strategies
Correlation analysis
Employees
Executive compensation
Financial performance
Hegemony
Hypotheses
Management principles
Outside directors
Population estimates
R&D
Ratios
Research & development
Research & development expenditures
Sampling errors
Standard deviation
Stockholders
Studies
Systematic review
Online AccessGet full text

Cover

More Information
Summary:Given the existence of conflicting theoretical perspectives and inconsistent empirical results, this study examined the relationship between board composition (insider/outsider ratios) and organizational performance. A meta-analysis was conducted and results indicate that both insider-and outsider-dominated boards, in general, had a small positive impact on financial performance. In addition, the use of different measures for composition and performance variables clearly affected the pattern of results. Finally, the managerial implications of outsider-dominated and insider-dominated board structures are discussed.
ISSN:1045-3695
2328-7470