The Analysis of Efficiency of Inventory Management with Emphasis on Effect of Board Structure: Application of Panel Data Method in Producing Companies

According to the importance and role of board structure in inventory management this research’s aim is to analysis the effect of two criteria of board structure along with institutional ownership of public sector effect on efficiency of inventory management. The research uses panel data method during 2009-2013 for 54 producing companies in 7 industries. The results show that institutional ownership of public sector promotes efficiency of inventory management in chemical, automobile, metallic and non-metallic minerals; and metal products industries but this factor makes efficiency of inventory management weak in pharmaceutical industry. Also board size and non-executive members to all members of board ratio have a different effect on inventory to sale ratio. So that increase in board size causes a significant decrease in efficiency of inventory management while non-executive members to all members of board ratio has an improvement in efficiency.