Board Characteristics and Company Performance: A Case Study for the U.S.

This research aims to investigate corporate board structures and compositions, as well their interrelationships. An empirical analysis on a sample consisting of 6,962 public traded U.S. corporations was conducted the "isolation" consequences characteristics such independence, financial expertise, tenure company's earnings quality were examined. Furthermore, it investigated whether what extent outside directors influences effects expertise independence quality. The Modified Jones model used generate discretionary accruals, which subsequently accrual-based management. Firms with more independent higher proportion experience are found have no effect degree Outside directors' average tenure, other hand, has negative significant impact study demonstrates that affects expertise. Both statistically positive influence indicates that, even if there is at least one member board, effectiveness monitoring decreases over time. In this study, examined using management models. these qualities real management, however, not been studied. As usage expanded in post-SOX era, utilization models intriguing for future pertaining characteristics. utilized analyzed only large enterprises, larger companies. Due SOX requirements organizations subject, might contribute lack diversity makeup may an regression findings by displaying low or non-significant effects. Future find interesting determine differences between governance smaller Based findings, possible conclude when evaluating firm's profits quality, critical evaluate both structure individual features members, tenure. adds expanding corpus performance. It focuses situated United States, where hotly debated topic, particularly after enactment SOX. looks "isolation", but also responds recent calls researchers look interaction various traits. examines