Boards: Does One Size Fit All?

This paper re-examines (1) the relation between firm value and board structure and (2) the factors associated with cross-sectional variation in board structure. Conventional wisdom and existing empirical research suggest that firm value decreases as the size of the firm's board increases, and as the fraction of insiders on the board increases. In this paper, we argue that, contrary to conventional wisdom, some firms may benefit from having...