Company Performance and the Two-Tier Board Structure: Empirical Evidence from France
This study's objective is to assess the impact of board structure on company performance in France, where companies are allowed to choose between a one-tier or a two-tier board structure and to verify the specificities of companies with a two-tier board. To verify the specificities of companies with a two-tier board, we analyze 250 large publicly traded companies and find that the two-tier structure does have a significant impact on long-term performance, measured by Tobin's Q, yet no impact on cash holdings. Supervisory board size and the percentage of shares controlled by supervisors also have a significant impact on performance. Our findings are consistent with agency theory.
Volume (Year): 12 (2013)
Issue (Month): 1 (June)
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