Higher market valuation of companies with a small board of directors

David Yermack · Journal of Financial Economics · 1996

Resource page

Quick overview. Review the resource’s basic details, then access the content using the main button. This page shows only the information needed to identify, cite, and open the work.

Author / responsible party

David Yermack

Publisher

Journal of Financial Economics

Year

1996

Language

English

Resource access

Open the content from the main option or choose another available source.

OpenAlex OpenAlex Works

Entrar por OpenAlex

Main access

Resource page

Resource reference page. Full text availability has not been automatically confirmed.

Open resource

Summary

Descripción general del contenido del recurso.

I present evidence consistent with theories that small boards of directors are more effective. Using Tobin's Q as an approximation of market valuation, I find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations between 1984 and 1991. The result is robust to numerous controls for company size, industry membership, inside stock ownership, growth opportunities, and alternative corporate governance structures. Companies with small boards also exhibit more favorable values for financial ratios, and provide stronger CEO performance incentives from compensation and the threat of dismissal.

How to cite

Elegí el formato que necesitás y copiá la referencia al portapapeles.

APA 7

Yermack, D. (1996). Higher market valuation of companies with a small board of directors. https://doi.org/10.1016/0304-405x(95)00844-5

MLA

Yermack, David. "Higher market valuation of companies with a small board of directors." 1996. https://doi.org/10.1016/0304-405x(95)00844-5.

Chicago

Yermack, David. 1996. "Higher market valuation of companies with a small board of directors.". https://doi.org/10.1016/0304-405x(95)00844-5.

Harvard

Yermack, D. 1996, Higher market valuation of companies with a small board of directors, Journal of Financial Economics, available at: https://doi.org/10.1016/0304-405x(95)00844-5 [Accessed 8 Aug. 2026].

Share and print

Save the record, copy its permanent link, or print it as a PDF.

Export reference

You can export the record in common formats for use in a reference manager.

RIS BibTeX

Resource details

Bibliographic information to help confirm that this is the correct material.

Title: Higher market valuation of companies with a small board of directors

Author / contributors: David Yermack

Publisher: Journal of Financial Economics

Publication year: 1996

Language: English

Subjects

Explore related resources through these subjects.

Corporate governance; Valuation (finance); Accounting; Market value; Business; Incentive; Enterprise value; Dismissal; Tobin's q; Economics; Finance; Microeconomics