The relationship between firm performance and board characteristics in Ireland

In this study we explore the association between firm performance and both board size and board composition for companies quoted on the Irish Stock Market. We also investigate the impact of firm size on the relationship between firm performance and the aforementioned board characteristics. We find evidence that: (i) board size exhibits a significant negative association with firm performance, (ii) the relationship between board size and firm performance is significantly less negative for smaller firms, and (iii) a positive and significant association between firm performance and the percentage of non-executives on the board is apparent. While the latter finding is entirely consistent with a priori theoretical predictions, studies in a number of other countries generally fail to report any significant association between board composition and firm performance and potential reasons for this contrast are considered. (C) 2009 Elsevier Ltd. All rights reserved.