scholarly journals Do larger boards improve shareholder value creation? – Effects of the board size on business performance in Eastern Central Europe

2020 ◽  
Vol 42 (3) ◽  
pp. 245-279
Author(s):  
Zsolt Lakatos
Keyword(s):  
Firm Performance ◽  
Regression Models ◽  
Positive Impact ◽  
Supervisory Board ◽  
Panel Regression ◽  
Board Size ◽  
Dynamic Panel ◽  
Management Board ◽  
Dynamic Panel Regression ◽  
Panel Regression Models

AbstractThe aim of this study is to analyse the impact of board size on a firms' operational and market performance at the largest East Central European listed non-financial, non-public utility firms. The literature debates the effects of the size of the board. While the resource dependency theory supports a positive effect, the agency theory supports a negative impact on firm value. This question is rarely investigated in two-tiered corporate governance models. This paper estimates the effects of management board and supervisory board size, between 2007 and 2016. The results indicate that the effect of management board size depends heavily on the size of the observed company. In both fixed effects and GMM-type dynamic panel regression models, using Tobin's Q, market-to-book ratio, total shareholder value and ROA as firm performance measures, increase in management board size has a significant positive impact on firm performance; however, in the case of larger firms, the effect is significantly negative. Moreover, the increase in the ratio of outside directors has a positive impact on the firm's performance in all dynamic panel regression models and this effect is even more significant in Tobin's Q and market-to-book ratio models. This can indicate the effective monitoring role of the supervisory board.

scholarly journals Relationships between Renewable Energy and the Prevalence of Morbidity in the Countries of the European Union: A Panel Regression Approach

2021 ◽  
Vol 18 (12) ◽  
pp. 6548
Author(s):  
Robert Stefko ◽  
Beata Gavurova ◽  
Miroslav Kelemen ◽  
Martin Rigelsky ◽  
Viera Ivankova
Keyword(s):  
European Union ◽  
Renewable Energy ◽  
Statistical Methods ◽  
Regression Models ◽  
Kidney Diseases ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Panel Regression ◽  
The European Union ◽  
Panel Regression Models

The main objective of the presented study was to examine the associations between the use of renewable energy sources in selected sectors (transport, electricity, heating, and cooling) and the prevalence of selected groups of diseases in the European Union, with an emphasis on the application of statistical methods considering the structure of data. The analyses included data on 27 countries of the European Union from 2010 to 2019 published in the Eurostat database and the Global Burden of Disease Study. Panel regression models (pooling model, fixed (within) effects model, random effects model) were primarily used in analytical procedures, in which a panel variable was represented by countries. In most cases, positive and significant associations between the use of renewable energy sources and the prevalence of diseases were confirmed. The results of panel regression models could be generally interpreted as meaning that renewable energy sources are associated with the prevalence of diseases such as cardiovascular diseases, diabetes and kidney diseases, digestive diseases, musculoskeletal disorders, neoplasms, sense organ diseases, and skin and subcutaneous diseases at a significance level (α) of 0.05 and lower. These findings could be explained by the awareness of the health problem and the response in the form of preference for renewable energy sources. Regarding statistical methods used for country data or for data with a specific structure, it is recommended to use the methods that take this structure into account. The absence of these methods could lead to misleading conclusions.

scholarly journals Corporate Governance and Firm Performance: The Role of the Board and Audit Committee

2018 ◽  
Vol 10 (1) ◽  
pp. 210
Author(s):  
Netai Kumar Saha ◽  
Rehnuma Hoque Moutushi ◽  
Mohammad Salauddin
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Group Dynamics ◽  
Internal Control ◽  
Audit Committee ◽  
Performance Indicator ◽  
Positive Impact ◽  
Board Independence ◽  
Board Size

Corporate Governance (CG) has become a paramount issue due to its greater significance of practicing accuracy, maintaining accountability, establishing effective internal control and regulating organizations for achieving organizational goals. The study is conducted to explore the relationship between corporate governance and firm performance with considering the role of board and audit committee. The multiple liner regression analysis is used as the underlying statistical test on the dependent variables, ROA, ROE and TQ to test the association between the independent variables (board size, board independence, size of audit committee and audit committee composition) with firm performance. Homogeneous purposive sampling has been used. The sample size of the study is 81 listed companies in DSE. The results of the study signify that board independence ratio and audit committee is statistically significant and has positive impact on ROA and TQ. But it is not statistically significant in the case of firm performance indicator ROE in this study. In addition to, Board size is not statistically significant and has negative correlation with firm performance due to group dynamics, communication gaps and indecisiveness of larger groups.

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