Board Size Effects in Closely Held Corporations

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Board Size Effects in Closely Held Corporations

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dc.contributor.author Bennedsen, Morten en_US
dc.contributor.author Kongsted, Hans Christian en_US
dc.contributor.author Meisner Nielsen, Kasper en_US
dc.date.accessioned 2009-02-04T10:27:44Z
dc.date.available 2009-02-04T10:27:44Z
dc.date.issued 2004-12-08T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7566
dc.description.abstract Previous work on board size effects in closely held corporations has established a negative correlation between board size and firm performance. We argue that this work has been incomplete in analysing the causal relationship due to lack of ownership information and weak identification strategies in simultanous equation analysis. In the present paper we reexamine the causal relationship between board size and firm performance using a dataset of more than 5,000 small and medium sized closely held corporations with complete ownership information and detailed accounting data. We test the potential endogeneity of board size by using a new instrument given by the number of children of the founders of the firms. Our analysis shows that board size can be taken as exogenous in the performance equation. Furthermore, based on a flexible model specification we find that there is no empirical evidence of adverse board size effects in the typical range of three to six board members. Finally, we find a significantly negative board size effect in the minority of closely held firms which have comparatively large boards of seven or more members. en_US
dc.format.extent 34 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2004-009 en_US
dc.subject.other kep en_US
dc.title Board Size Effects in Closely Held Corporations en_US
dc.type wp en_US
dc.accessionstatus modt04dec07 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.idnumber x656444567 en_US
dc.publisher.city København en_US
dc.publisher.year 2004 en_US


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