THE RELATIONSHIP BETWEEN BOARD STRUCTURE AND FIRM PERFORMANCE IN THE UK

This study examines the relationship between board structure with firm performance in the UK by employing data from 250 publicly traded firms. Consistent with general findings from the USA, the tests as a whole do not discern a significant link between board structure (director affiliation and ownership, chairman affiliation, and committee composition) with firm performance. These results are robust to alternative measures of performance, outlier definitions, various model specifications, and statistical estimation techniques. The most significant determinants of corporate performance are the level of R&D spending and current operating performance. These results are consistent with governance needs varying across firms, and contrast the notion that uniform board structures should be mandated.