Board characteristics and the financial performance of Nigerian quoted firms

2012 ◽  
Vol 12 (5) ◽  
pp. 656-674 ◽  
Author(s):  
Augustine Ujunwa
Keyword(s):  
Financial Performance ◽  
Board Characteristics

scholarly journals The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Gratiela Georgiana Noja ◽  
Eleftherios Thalassinos ◽  
Mirela Cristea ◽  
Irina Maria Grecu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Services ◽  
Structural Equation ◽  
Supervisory Board ◽  
Fiscal Year ◽  
Services Sector ◽  
Board Characteristics ◽  
Financial Services Sector ◽  
Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

The moderating effects of a board of directors on FDI’s international diversification in Turkey

2015 ◽  
Vol 23 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Kader Şahin ◽  
Seyfettin Artan ◽  
Seda Tuysuz
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
International Diversification ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Outside Directors ◽  
Moderator Variable ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose – This paper aims to investigate the moderating effects of a board of directors on foreign direct investment (FDI)’s international diversification in Turkey. Design/methodology/approach – A sample of Turkish multinational firms with FDI was used. Two different aspects of international diversification were considered: the relationship between international diversification and financial performance and the moderating effect of board composition on the relationship between international diversification and the firm’s financial performance. Firm-level data were obtained from the Istanbul Stock Exchange in Turkey. Findings – The findings reveal that international diversification leads to better financial performance according to market-based measures. On the other hand, this study indicates that the board characteristics have a moderating effect on international diversification and financial performance. Research limitations/implications – The study is based on a sample of publicly listed firms in Turkey, and this restriction limits the generalizability of the findings. Practical implications – The internalization efforts of Turkish FDI have led to better financial performance in terms of market-based measures. The results have stated that the interest of independent outside directors is aligned with lower-risk investment decisions. Independence of independent outside directors in Turkey is interrogated by practitioners or the Capital Markets Board of Turkey. The larger board size which a moderator variable is provided, the wider shareholder value in Turkey is. Social implications – One can understand that the development of market-supporting institutions provides the support for entry to an emerging economy which is inefficient or incomplete markets and highly concentrated family ownership. Originality/value – These findings provide important implications for corporate governance and highlight the need for further research on the role of governance in firm internationalization. This study not only helps to understand how board characteristics affect the choice of international diversification decisions, but the results also allow to assess the performance implications of these choices for a particular period.

scholarly journals Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

2021 ◽  
Vol 14 (8) ◽  
pp. 354
Author(s):  
Matteo Rossi ◽  
Jamel Chouaibi ◽  
Salim Chouaibi ◽  
Wafa Jilani ◽  
Yamina Chouaibi
Keyword(s):  
Financial Performance ◽  
Potential Effect ◽  
Moderating Effect ◽  
Governance Mechanisms ◽  
Board Characteristics ◽  
Thomson Reuters ◽  
Corporate Social ◽  
The Relationship ◽  
Source Of Information

This study aims to examine the potential effect that corporate social responsibility practices (CSR) have on financial performance in ESG firms, using the moderating role of board characteristics. To test the moderating effect of the board characteristics in the relationship between CSR practices and financial performance, we applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries in analyzing data of 225 listed companies between 2015 and 2019. The results show that board characteristics partially moderate the relationship between CSR practices and financial performance in European ESG firms. In addition, this study indicates that CSR practices affect the firm’s financial performance positively. The study findings appended a new dimension to governance research that could provide policymakers and regulators with a valuable source of information to strengthen governance mechanisms for better financial performance. Previous studies mostly investigate the direct effect of corporate governance on financial performance. A few studies examine the moderating effect of CSR practice. This paper contributes by investigating the moderating effect of governance mechanisms in the ESG context.

scholarly journals MODERATING EFFECT OF FINANCIAL PERFORMANCE ON THE RELATIONSHIP BETWEEN BOARD CHARACTERISTICS AND DIVIDEND POLICY OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 34-48
Author(s):  
Alawiyya Ilu ◽  
◽  
Yunusa Ibrahim ◽  
Binta Nuhu ◽  
◽  
...  
Keyword(s):  
Financial Performance ◽  
Dividend Policy ◽  
Moderating Effect ◽  
Policy Implications ◽  
Board Composition ◽  
Board Size ◽  
Board Diversity ◽  
Board Characteristics ◽  
Financial Firms ◽  
The Relationship

The study analyses the moderating effect of financial performance on the relationship between board characteristics and dividend policy of listed non-financial firms in Nigeria. Board characteristics is proxied by board composition, board size, and board diversity, while dividend policy is proxied by dividend pay-out ratio. The positivist research paradigm and correlational research design were used. Relevant data for the study were collected from 39 sampled non-financial firms actively trading on the floor of the Nigerian stock exchange (NSE) from 2008 to 2017; the data collected were analysed using the panel corrected standard error (PCSE) regression analysis. The findings reveal that board composition and board diversity have positive but insignificant effect on dividend pay-out ratio of non-financial firms before moderation, While, board size has positive and significant effect on dividend policy of listed non-financial firms before moderation. The study also found that financial performance moderate the relationship between board characteristics and dividend pay-out ratio of listed non-financial firms. Based on the findings, the study concludes that board composition and board size are related with high dividend payment. Among the important policy implications is that the variable of board size used suggest that there is the need by SEC to monitor the available cash at the discretion of managers since financial performance can moderate the relationship between board size and dividend pay-out ratio in order to mitigate agency conflict between management and shareholders of listed non-financial firms which is in-line with the practical problem of the study. It is therefore recommended amongst others that the government through the regulators should provide an enabling environment for non-financial firms to make a profit and pay more dividends to their shareholders since the interaction effect of financial performance makes the variables of the study to be more active in influencing the dividend pay-out ratio of non-financial firms in Nigeria.

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