Abstract

The article discusses methods to determine the optimal size for boards of directors in order to maximize financial performance. While some researchers suggest that 8 to 10 members is the ideal size, other claim that any more than 8 is too large. The authors attempt to fix gaps in research that focuses solely on publicly-traded companies by developing a curvilinear dual-mediating model that includes both collaboration and control functions to examine if the benefits of bigger boards are outweighed by costs associated with larger groups.

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