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Boards Of Directors’ Composition And Financial Performance: The Columbia Sportswear Case

4807 words - 20 pages

Corporate Governance
Aikaterini Dimitriou 1030771

Boards of Directors’ Composition and Financial
Performance:
The Columbia Sportswear Case

Aikaterini Dimitriou 1030771

Contents
I.

Introduction ...................................................................................................................................... 2

II.

Theoretical Background ................................................................................................................ 2

A.

Board composition; .................................................................................................................... 3

B.

Board size. ...view middle of the document...

... 9

E.

Consolidated Statements Of Operations ............................................................................ 9

IV.

The Case Analysis ......................................................................................................................... 10

A.

Board Size.................................................................................................................................... 10

B.

Outsiders’ Representation ..................................................................................................... 10

C.

Minority Representation ......................................................................................................... 11

V.

Conclusion........................................................................................................................................ 12

VI.

Bibliography .................................................................................................................................... 13

Page 1 of 13

Aikaterini Dimitriou 1030771

I.

Introduction

This thesis is focusing on the subject of Boards of Directors’ composition influence to firms’
financial performance. More specifically we will be concentrated to three aspects of Boards’
composition: Board size, Outsiders’ representation and Minority representation.
The reason why I chose this subject is because I have a very good perspective of the theories
developed around it, as I have studied extensively the topic of Board of Directors and the
firm’s performance. In addition it is a subject that interests all th e companies so that they will
form a board as effective as possible. Furthermore, there have been many researches on this
topic with contradictory results every time. So it remains a topic of interest for researchers.
The background on which this thesis is based on is an article from the Journal of Management
(Vol. 15 No2 1989) by Shaker A. Zahra and John A. Pearce II. Also as referred in the title
Columbia Sportswear Company will be the case examined.
The main purpose of this thesis is to investigate if the Columbia Sportswear Company case
verifies the theory and more especially the research es in which we will be based on. Our
attention will be more focused on the Outsiders’ and Minority –women- representation in the
Board of Directors, as these are the two sectors that most companies are concerned of and
that are more controversial. So, our goal will be to answer the question: What is the role of
Columbia Sportswear Company Board of Directors composition in the company’s financial
performance? Is this role compatible with the findings of the article research es?
This thesis begins with a theoretical section where the most sig nificant elements of the
background article will be presented. Then there will be a description of the Columbia
Sportswear Company and after that the case analysis, where a contrast will take...

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