On the determinants of board size and its composition: additional evidence from Ghana

Purpose – The fundamental objective of this study is to contribute to the debate by empirically examining the determinants of board size and its composition from a small and developing country perspective. Design/methodology/approach – The paper uses a quantitative approach based on secondary data from firms listed on the Ghana Stock Exchange. Panel data multiple regressions within both fixed and random effects techniques estimations were carried out. Findings – Board size and its composition are a function of firm and industrial characteristics. Specific findings are that, while firm level risk has a positive relationship with board size, CEO tenure has a negative correlation with board size; and that firms with larger institutional shareholding employ less outside directors Research limitations/implications – A study of this nature requires a large sample base. It is therefore obvious that sample size was the main limitation of the study. Though, this limitation does not compromise on the validity of our findings, study findings and its general interpretation should be done with some degree of caution. Originality/value – Since, most of the studies in this area have been largely theoretical and have concentrated in developed countries, this paper makes an important contribution by looking at the issue empirically from a small and developing country perspective.