The Effect of Board Structure on Banks Financial Performance by Moderating Firm Size

The objective of this study is to provide a comprehensive overview of possible influences that the key players of determinants of board structure - board size and board independence, might have on banks financial performance path to success. Dissimilar with recent researches which were focused to test corporate governance influences on firm performance, this study investigates the role of bank size (log of asset) as moderator on relationship between board size and board independence with banks financial performance. The data of 37 Malaysian banks (21conventional, 16 Islamic) is analyzed by regression models using StataSE 12 software. The results show that the relationship between determinants of board structure (board size, and board independence) and financial performance moderated by firm size. DOI: 10.5901/mjss.2016.v7n1p25