Product Markets Offer New Evidence on How Board Structure Affects Firm Performance

In a new paper, we discuss our findings on how corporate board structure affects firm performance under different product market conditions. Though many studies have examined the relationship between corporate board structure and firm performance, some have found that board independence has a positive effect on performance while others have found that it has a negative effect and still others have found a statistically insignificant correlation. More recent studies, though, have taken a new perspective, examining whether the association between board independence and firm performance depends on product market demands.

Changing product market conditions can affect the need for monitoring … Read more