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Size and Composition of Corporate Boards of Directors: The Organization and its Environment
Administrative Science Quarterly
Vol. 17, No. 2 (Jun., 1972), pp. 218-228
Published by: Sage Publications, Inc. on behalf of the Johnson Graduate School of Management, Cornell University
Stable URL: http://www.jstor.org/stable/2393956
Page Count: 11
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The board of directors is considered as an instrument for dealing with the organization's environment. In a random sample of eighty nonfinancial corporations, elements of board size and composition are shown to be systematically related to factors measuring the organization's requirements for coopting sectors of the environment. Organizations that deviate more from an empirically estimated optimal board structure equation are likely to perform more poorly, compared to industry standards.
Administrative Science Quarterly © 1972 Johnson Graduate School of Management, Cornell University