2.2 Board Size Jensen (1993: 865) suggests that the board which consists of more than seven or eight
members is less likely to effectively work. He informs that board with small size can perform improvably. As board gets increase in size, the problem of coordination incurs. Vafeas (2000: 142,144) explains that the directors in the large board may ineffectively exchange ideas. He indicates that the directors in a small board, compared to a 14- or-15- member board, have a better circumstance to conduct the detailed discussion of actual fi nancial reporting information