Evaluation of the Effect of the Structure of the Board of Directors on Profitability Case Study: SMEs in the City of Sanandaj Abdi Kazhalla, Malgharani Ataollah Mohamadib aDepartment of Management, College of Sanandaj, Islamic Azad University, Sanandaj Branch, Sanandaj, Iran bDepartment of accounting, Islamic Azad University, Sanandaj Branch, Sanandaj, Iran Abstract The board structure of a company includes its senior management team. It supervises controls and has sovereignty over a particular company's major policies. The aim of this study was to evaluate the impact of board structure on profitability of small and medium enterprises in the city of Sanandaj. To test the research hypotheses, multiple cross-sectional regression, correlation, and t-test using the combined data were used to examine the relationship between the board structure and profitability in various industries. The sample includes 254 small and medium enterprises in the city of Sanandaj for a six-year period from 2008 to 2013. 129 companies were selected from various industries on the basis of systematic elimination. The research findings show that there is a significant relationship between the main hypothesis: "Board structure of a company has a significant effect on the profitability of small and medium companies, and the particular assumptions including the effect of board size, ownership concentration of a company's board, the separation of the role of Chairman and CEO, the composition of the board, financial knowledge, the proportion of non-bound board on the profitability of small and medium companies representing the variables of the structure of the board and "operating profit, net profit, gross profit, EPS, ROA, ROE" representing the profitability variables. Top Keywords Board structure, profitability, small and medium companies (SMEs). Top |