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Cited by 6,603

The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.

Higher market valuation of companies with a small board of directors

Open access
Yermack, David·1996·Journal of Financial Economics
DOI 10.1016/0304-405x(95)00844-5
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Abstract

I present evidence consistent with theories that small boards of directors are more effective. Using Tobin's Q as an approximation of market valuation, I find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations between 1984 and 1991. The result is robust to numerous controls for company size, industry membership, inside stock ownership, growth opportunities, and alternative corporate governance structures. Companies with small boards also exhibit more favorable values for financial ratios, and provide stronger CEO performance incentives from compensation and the threat of dismissal.

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Metadata

Authors
Yermack, D.
Venue
Journal of Financial Economics
Publisher
Elsevier BV
Published
1996-02
Volume
40
Issue
2
Pages
185-211
ISSN
0304-405X (ISSN-L)
DOI
10.1016/0304-405x(95)00844-5
OpenAlex
W2074132263
Cited by
6,603
References
1
FWCI
137.59
Type
journal article
Language
en
Open access
hybrid

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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.