The impact of board composition on firms' critical decisions: A meta-analytic review

To date, the results of agency theory-based research exploring the impact of board composition on firms' critical decisions ore equivocal. Through meta-analyses, this study reveals systematic relationships between board composition and six of the seven critical decisions examined. Interestingly, the results provide little support to agency theory's predictions on the impact of board composition on critical decisions that involve a potential conflict of interest between managers and shareholders. Implications for theory and practice are discussed.