Board Meeting Frequency and Firm Performance
Nikos Vafeas
Journal of Financial Economics 53, 113-142, 1999

This study examines the relationship between board activity, as measured by board meeting frequency, and corporate performance. It finds that an increase in board activity is mainly driven by prior share price declines. In addition, it also finds that operating performances improve following years of increased board activity. Moreover, the improvements in performances are most pronounced for firms with poor prior performances and for firms not engaged in corporate control transactions. These results suggest that board activity is an important dimension of board operations.