Size Really Matters: Further Evidence on the Negative Relationship Between Board Size and Firm Value

This study examines the impact of corporate governance mechanisms of Singapore and Malaysian firms on the Tobin's Q of these firms. We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q. However, consistent with Yermack (1996) and Eisenberg et al. (1998), we find that there is an inverse relationship between board size and Tobin's Q in both countries. This suggests that the negative relationship between board size and firm value transcends different corporate governance systems.