The DOI matches its Crossref record; 23 of the 23 references it cites were found in a registry or an index.
Firm Performance and Board Committee Structure
Abstract
This article demonstrates a linkage between firm performance and board composition by examining the committee structure of boards and the directors' roles within these committees. Consistent with previous studies, I find little association between firm performance and overall board composition. However, by going into the inner workings of the board via board committee composition, I am able to find significant ties between firm performance and how boards are structured. First, a positive relation is found between the percentage of inside directors on finance and investment committees and accounting and stock market performance measures. Next, firms significantly increasing inside director representation on these two committees experience significantly higher contemporaneous stock returns and return on investments than firms decreasing the percentage of inside directors on these committees. These findings are consistent with Fama and Jensen's assertion that inside directors provide valuable information to boards about the firms' long‐term investment decisions.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Separation of Ownership and Control
Fama, E. F., & Jensen, M. C. (1983) · The Journal of Law and Economics · doi:10.1086/467037 · Cited by 19,058
Agency Problems and the Theory of the Firm
Fama, E. F. (1980) · Journal of Political Economy · doi:10.1086/260866 · Cited by 10,466
The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
JENSEN, M. C. (1993) · The Journal of Finance · doi:10.1111/j.1540-6261.1993.tb04022.x · Cited by 8,528
Management ownership and market valuation
Morck, R., Shleifer, A., & Vishny, R. W. (1988) · Journal of Financial Economics · doi:10.1016/0304-405x(88)90048-7 · Cited by 6,895
Higher market valuation of companies with a small board of directors
Yermack, D. (1996) · Journal of Financial Economics · doi:10.1016/0304-405x(95)00844-5 · Cited by 6,603
Additional evidence on equity ownership and corporate value
McConnell, J. J., & Servaes, H. (1990) · Journal of Financial Economics · doi:10.1016/0304-405x(90)90069-c · Cited by 4,309
Firm Performance and Mechanisms to Control Agency Problems between Managers and Shareholders
Agrawal, A., & Knoeber, C. R. (1996) · The Journal of Financial and Quantitative Analysis · doi:10.2307/2331397 · Cited by 2,801
Risk Reduction as a Managerial Motive for Conglomerate Mergers
Amihud, Y., & Lev, B. (1981) · The Bell Journal of Economics · doi:10.2307/3003575 · Cited by 2,772
Jackson, E. L., Cohen, K. J., & Cyert, R. M. (1966) · Southern Economic Journal · doi:10.2307/1054885 · Cited by 2,288
Outside directors, board independence, and shareholder wealth
Rosenstein, S., & Wyatt, J. G. (1990) · Journal of Financial Economics · doi:10.1016/0304-405x(90)90002-h · Cited by 1,929
Cited by
Earnings management and corporate governance: the role of the board and the audit committee
Xie, B., Davidson, W. N., & DaDalt, P. J. (2003) · Journal of Corporate Finance · doi:10.1016/s0929-1199(02)00006-8 · Cited by 2,777
The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey
Adams, R. B., Hermalin, B. E., & Weisbach, M. S. (2010) · Journal of Economic Literature · doi:10.1257/jel.48.1.58 · Cited by 2,358
Corporate Governance, Accounting Outcomes, and Organizational Performance
Larcker, D. F., Richardson, S. A., & Tuna, I. (2007) · The Accounting Review · doi:10.2308/accr.2007.82.4.963 · Cited by 1,534
The Brain Gain of Corporate Boards: Evidence from China
GIANNETTI, M., LIAO, G., & YU, X. (2015) · The Journal of Finance · doi:10.1111/jofi.12198 · Cited by 851
The Supply of Corporate Directors and Board Independence
Knyazeva, A., Knyazeva, D., & Masulis, R. W. (2013) · Review of Financial Studies · doi:10.1093/rfs/hht020 · Cited by 678
Metadata
- Authors
- Klein, A.
- Venue
- The Journal of Law and Economics
- Publisher
- University of Chicago Press
- Published
- 1998-04
- Volume
- 41
- Issue
- 1
- Pages
- 275-304
- ISSN
- 0022-2186 (ISSN-L)
- 1537-5285
- OpenAlex
- W1979369088
- Cited by
- 1,761
- References
- 23
- FWCI
- 80.70
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Firm Performance and Board Committee Structure. https://app.cochat.ai/papers/10.1086/467391
- The paper
- Klein, A. (1998). Firm Performance and Board Committee Structure. The Journal of Law and Economics. https://doi.org/10.1086/467391
Data sources
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.
