This study seeks to examine board structure and its relationship and impact on the listed companies’ performance in USA. A cross-sectional and correlational research design with a sample of 100 listed companies in USA was used. Correlation analysis was carried out to establish the relationship between the variables. Multiple regression analyses were used to determine the extent to which variations in performance of companies are explained by the board structures. The findings portrayed that high frequency of meetings adversely affects the company performance, whereas combined board leadership structure positively contributes to company performance which is contrary to the agency theory expectations. Other than that, it can be concluded that financial performance is independent of board size and composition. It is highly recommended that future research should be focused on nonfinancial aspects of performance in order to get a holistic performance view rather than restricting to accounting-based performance, which is based on accounting principles and assumptions since this provides evidence for future success through overall stakeholder satisfaction. Furthermore, an intense understanding of corporate governance structures and their relations with company performance has the potential to assist practitioners, both policy makers and researchers, to improve governance.

Corporate governance has been perceived as indispensable in the contemporary business setup as it empowers corporations to realize their corporate objectives, protect shareholder rights, meet legal requirements and demonstrate to a wider public how they are conducting their business. As corporations grow in size and complexity and doing business in the global arena, it has become essential for boards to uphold the highest standards of corporate governance and to perform its role effectively. Evidence reveals that noncompliance and ineffective board functioning have resulted in collapse of corporate giants around the globe. An effective board is perceived as a requirement for a sound corporate governance framework based on the view that effective boards are likely to positively influence company performance. The board of directors acts as one of the most important governance mechanisms in aligning the interests of managers and shareholders. An effective board of directors is at the heart of the governance structure of a well-functioning and well-governed corporation, acting as the ultimate internal monitor. Ideally, the board guides long-term corporate strategy, puts the key agents in place to implement it, and monitors performance against the strategy set out. Prior studies recognize that board size and composition makes a board efficient and effective towards performing its duties and responsibilities. Those studies have revealed the fact that different continents react differently in terms of the corporate governance practices (Farrar, 2001; and Bonn, 2004).

In fact, the effectiveness of board which lies in its structure and configuration, such as board size, proportion of executive and non-executive directors, board leadership structure, board diversity including gender diversity, etc., are the major issues, and that is why in most of the codes and principles of corporate governance, and board attributes have been taken into account as one of the most important provisions of corporate governance legislation across the globe.

Corporate Governance Journal, The Nature of Corporate Board Structure, Performance of USA, New York Stock Exchange (NYSE), Board Size, Company Performance, Listed Firms.