The Effects of Competence and Composition of the Board of Directors on the Company's Measure of Economic Profit

This paper examines the impact of the board of directors composition on the company's efficiency. The importance of this problem is connected to the increasing interest to the study of factors that affect the economic efficiency of corporations. One of these factors is the composition of the board of directors and its competencies. For instance, researchers are studying such issues as introduction of women on the board, limitation of the board size, as well as the introduction of quotas for board members. Considering the fact that empirical and theoretical research in this field leads to contradictory conclusions, the study of this topic is urgent. Previous studies show that all these factors impact economic efficiency differently depending on the specific country. Finally, in todays world of constant changes paradigms developed even several years ago become obsolete and stop working in the current economic conditions. All this makes the study of competencies and composition of the board influence on the company's efficiency extremely topical.