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Board size and firm operating performance: Evidence from Germany

Graf, Andrea ; Stiglbauer, Markus


Abstract

Determining the optimum size of corporate boards is an important task for companies. Agency theory suggests that either too large or too small boards cause negative effects on firm operating performance. For a given sample of 113 listed firms in the German Prime market, we tested the effect of board size on return on assets and return on equity. Our findings provide evidence that there is a ...

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