Board Structure and Financial Performance : A Special Reference to Listed Companies in Sri Lanka

A sound corporate governance system needs a board structure which may result in improved results. This research aims to look into the influence of structural variables of a board on financial performance in listed companies in Sri Lanka. The qualities of the board of directors and the audit committee have been characterized as possibly having an impact on the company's financial performance, and based on the extensive research, these traits are designated as independent factors. From the 280listed companies on the CSE in Sri Lanka, a sample of 50 is chosen based on a stratified sampling method. The results state that there is optimum board size and number of non-executive independent directors are eight and three respectively. The board size, board independency, and audit committee independency impact on financial performance. Audit committee independency, independence of board, duality of CEO-Chairman, size of board, and audit committee meetings are best determinants which determine the financial performance