Does Board Size Matter for Taiwanese Hotel Performance? Agency Theory or Resource Dependence Theory

Jie Wang, Ming Hsiang Chen, Chin Yi Fang, Li Tian

Research output: Contribution to journalArticle

4 Citations (Scopus)


Due to the fast growing hotel industry in Taiwan, recent hospitality studies has paid attention to how various factors affect the Taiwanese hotel performance and offered interesting and valuable findings. To expand the financial literature of the Taiwanese hotel industry and the hospitality literature as a whole, this article is the first hospitality study to investigate how board size affects firm performance of publicly traded hotels in Taiwan. Panel regression test results reveal an interesting finding. Specifically, there is an inverted U-shaped relationship between board size and hotel performance in terms of return on assets, return on equity, and Tobin’s Q with an optimal value of board size equal to 10. This indicates that while board size up to 10 has a positive impact on hotel performance (supporting the resource dependence theory), board size can deteriorate hotel performance when it is larger than 10 (supporting the agency theory).

Original languageEnglish
Pages (from-to)317-324
Number of pages8
JournalCornell Hospitality Quarterly
Issue number4
Publication statusPublished - 2018 Nov 1



  • agency theory
  • board size
  • hotel performance
  • resource dependence theory

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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