Size really matters: Further evidence on the negative relationship between board size and firm value [An article from: Pacific-Basin Finance Journal]

This digital document is a journal article from Pacific-Basin Finance Journal, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
This study examines the impact of corporate governance mechanisms on the firm value of Singapore and Malaysia firms (as measured by Tobin's Q). We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q. However, consistent with Yermack [Higher market valuation of firms with a small board of directors. J. Financ. Econ. 40 (1996), 185-211] and Eisenberg et al. [Larger board size and decreasing firm value in small firms. J. Financ. Econ. 48 (1998), 35-54], we find that there is an inverse relationship between board size and firm value in both countries. This suggests that the negative relationship between board size and firm value transcends different corporate governance systems.