Effects of the size of the board of directors and board involvement in strategy on a private club's financial performance

Purpose – The purpose of this paper is to explore the effects of the size of the board of directors and board involvement in strategy on financial performance in the private club industry. Design/methodology/approach – Data were collected in a web‐based survey of chief operating officers (COOs) and general managers (GMs) who are members of the Club Managers Association of America (CMAA). Hierarchical regression analysis of data from 360 respondents was used to examine the proposed model. Findings – The results showed that board members' involvement in strategy and the size of the board of directors have a positive influence on a private club's financial performance. Research limitations/implications – Further research is indicated to include other board‐related influences such as group composition and the quality of relationships between board members and GMs/COOs to measure a club's financial performance. Originality/value – The paper contributes to the limited existing literature on the association between a board of directors and financial performance in the private club industry.