The Effect of Different Types of Directors on the Performance of the Company.

Kanakia, Gina (2010) The Effect of Different Types of Directors on the Performance of the Company. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

The role of the board of directors and their composition is a matter that revolves around

different contradictory views for the determination of the performance of the firms. There

are several contrasting views that have emerged related to the size of the board and its

effect on performance. One set of researchers’ state that larger board size will have

diverse skill and knowledge which in turn will have a positive impact on the performance

of the firm. The other group of researchers state that a larger board size will have a

negative effect on performance due to reasons like lack of coordination, slow decision

making process and free rider issues. The third group states that the relationship

between the size of the board and the performance of the firm is in form of an inverted

U shaped curve. While some other researchers find low significance or no link between

the board size and the performance of the firm. The researcher has thus formed the first

and the third hypothesis based on these contradictory views.

Based on the contradictory opinions regarding the number of non-executive directors

and their effect on performance of the firm the researcher has set the second

hypothesis for this dissertation. There are three groups of researchers that study the

effect of non-executive directors and their impact on the performance of the firm. One of

them state that there is a positive impact on performance, the other state that there is a

negative influence due to the outside directors and the third find no relation between the

non-executive directors and the performance of the firms. This dissertation studies

these issues, uses quantitative method to study the effect between variables, explains

the vagueness in data obtained, discusses the findings and mentions the inferences

and the implications formed out of this dissertation.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 14 Mar 2011 09:47
Last Modified: 21 Mar 2022 16:06
URI: https://eprints.nottingham.ac.uk/id/eprint/23583

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