Relationship Between Corporate Performance And Board

886 Words May 5th, 2016 4 Pages
Article 4:
Ireland:
Q1; the objective of this article is to explore the relationship between corporate performance and both board size and board composition for quoted Irish firms. This is one of the finest article that spoke about importance of independence non-executive directors for firm efficiency and economic growth in the context of Irish firms. Also emphasis on having small and large boards.
Q2. : The main research problem is, what types of board structure are optimal from perspective of maximizing stock holders wealth in Ireland. Subproblems of this paper listed below:
a) Whether firm size has moderating impact on the relation between firm performance and board size. Specifically whether the relationship between firm performance and board less negative for smaller Irish firms.
b) Whether having a higher proportion of non-executive directors on the board is positively associated with firm performance
Q3. Author discussed Agency theory in this paper. Agency theory is root of corporate governance. Author look at recent research papers which has done vast research on the topics of, corporate governance, the relationship between firm performance and board size, board structure and characteristics.
Q4. Hample (1998) and Higgs (2003) discussed about importance of independent non-executive directors, they recommended board should comprise with at least 50% independent nom executive directors. Author also motivated from de andress et al. (2005), the association between firm…
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