The Impact of the Board of Directors Characteristics on the Company’s Financial Performance

This paper makes an attempt to identify the Board of directors’ characteristics which can influence company financial performance. After literature investigation the main measurable characteristics of the board were determined: boardsize, share of independent directors, experience of every person in the board and gender structure. The main factors were analyzed within the sample of Russian publicly listed companies. The data were collected from the «SPARK» database, «Interfax» and «Investfunds» websites. The sample consists of characteristics of 85 companies during the period from 2012 to 2016. In order to set the ratio between board characteristics and company financial performance there were built the regression with fixed effects. This approach allows to take into account individual characteristics of the company. The results show that there is a negative ratio between the experience in foreign companies and dependent variables (Tobin’s Q and ROA). The connection of director with the government structure have positive ratio with company performance.