The effect of board structure on the performance of BIST companies

In addition to having a close relationship with many several areas as finance, economy, accounting, law, management and organizational behavior, corporate governance also incorporates different areas as shareholders, employees and stakeholders. Recently, within the context of corporate governance, the effect of board structure on company performance is one of the most investigated topics of the finance literature. Board size and board ownership are the key variables that represent board structure. The aim of this study is to investigate the effect of board structure on company performance. Panel Regression Analysis and Dynamic Panel Regression Analysis are employed to examine the impact of board structure on company performance. Tobin?s Q and ROA are used as dependent variables, whereas board structure variables and control variables are used as independent variables in the regression models which include the data for 143 companies whose shares are traded at Borsa Istanbul for the period 2008-2012. Analysis results suggest that board size has no effect on company performance. Likewise, board ownership seems to have no impact on company performance.