Understanding the Impact of Board Structure on Firm Performance: A Comprehensive Literature Review
DOI:
https://doi.org/10.18533/ijbsr.v10i1.1271Keywords:
Firm Performance, Board Composition, Board Structure, Independent DirectorsAbstract
There have been numerous studies which examined the impact of board structure on firm performance. However, all these studies have failed to provide any form of consensus on how board structure or board composition impact firm performance. Hence, we are left asking is there an effect on firm performance? The missing link therefore, is the absence of a comprehensive review of the literature which addresses the issue. The objective of this paper is to provide a thorough analysis of previous studies with the aim of providing some direction to and closure of the debate regarding the effect of board structure on firm performance. The results of the literature review showed that there are compelling arguments on both side to either support or refute the hypotheses that board structure impacts firm performance. Hence, paper provides a new direction for that researcher need take in an attempt to answer this decade-old question.
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