4.4.4 Conclusion

The seventeen studies in this section do not confirm the hypothesis of the agency theory and TCE theory that board independence has a positive influence on financial company performance. The overall consensus of the studies is that board independence negatively influences the financial performance of companies. These findings support the stewardship theory with its hypothesis that high percentages of directors from inside the company – i.e. low levels of board independence – lead to better financial company performance. The importance of board independence attributed by agency and TCE theorists might not be grounded on empirical evidence. However, other studies report different outcomes, as is described in the prior and following sections. It must be stressed that the definitions of independence, the time frames, the methodology, sample sizes and the types of companies included differ among the studies and might influence the results. The conclusion in section 4.6 elaborates on the differences.