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Board Structure and Firm Performance: Evidence from Australia

Published online by Cambridge University Press:  18 September 2015

Ingrid Bonn
Ingrid Bonn*
Affiliation:
Graduate School of Management, Griffith University, PMB 50 Gold Coast Mail Centre, Queensland, 9726, Australia Phone: +61 755528346, Email: I.Bonn@griffith.edu.au
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Abstract

The influence of corporate governance on firm performance has been discussed for a number of years, but mainly in a United States and European business context. This article investigates the composition of boards of directors in large Australian firms and analyses whether board structure has an impact on performance, as measured by return on equity and market-to-book value ratio. The results showed that outsider ratio and female director ratio were positively associated with firm performance, whereas board size and directors' age had no influence on firm performance.

Keywords

Corporate governanceboard structurefirm performanceAustralia
Type
Research Article
Information
Journal of Management & Organization , Volume 10 , Issue 1 , January 2004 , pp. 14 - 24
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2004

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