Journal of Applied Finance & Banking

Board Size, CEO Duality, and the Value of Canadian Manufacturing Firms

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• Abstract

  The purpose of this study is to examine the impact of board size and the CEO (Chief Executive Officer) duality on the value of Canadian manufacturing firms. A sample of 91 Canadian manufacturing firms listed on Toronto Stock Exchange (TSX) for a period of 3 years [from 2008-2010] was selected. The co-relational and non-experimental research design was used to conduct this study. The empirical results show that larger board size (large number of directors) has a negative impact on the value of Canadian manufacturing firms. The findings also show that the CEO duality has a positive impact on the value of Canadian manufacturing firms. In addition, firm size, firm performance, and potential growth of the firm positively impact on the value of Canadian manufacturing firms. This study contributes to the literature on the factors that affect value of the firm. The findings may be useful for the financial managers, investors, and financial management consultants.