The effect of board multiple directorships and CEO characteristics on firm performance: evidence from Palestine

2021 ◽  
Author(s):  
Abdul-Naser Ibrahim Nour

2020 ◽  
Vol 10 (4) ◽  
pp. 637-654
Author(s):  
Mohammed W.A. Saleh ◽  
Rabee Shurafa ◽  
Siti Norwahida Shukeri ◽  
Abdulnasr Ibrahim Nour ◽  
Zaharaddeen Salisu Maigosh

PurposeThe purpose of this study is to empirically examine the effect of board multiple directorships and chief executive officer (CEO) characteristics on firm performance among nonfinancial firms listed on the Palestine Security Exchange (PSE) during the period from 2009 to 2016.Design/methodology/approachBased on 200 observations, this study utilizes panel data to examine the effect of the predictors on firm performance measured by return on assets. The analysis is repeated using the return on equity and two regression methods to evaluate the robustness of the main analysis (pooled regression, and backward stepwise regression analysis).FindingsThe results show that the “busyness” of a CEO reduces their effectiveness and is associated with losses in the companies where they are in charge. On the other hand, the results show that CEO tenure, CEO experience and CEO political connections have a positive effect on corporate performance.Originality/valueThis study is timely given that the practice of multiple directorships is widely common among firms in developing countries. Prior research in Palestine has not investigated the role of multiple directorships and the CEO characteristics on corporate outcomes. This study provides a picture of the potential benefits to firms, policymakers and professional bodies from considering CEO variables. The findings of such an examination can help them to set up suitable policies and enhance the role and the quality of the CEO in firms.





2020 ◽  
Vol 2020 (1) ◽  
pp. 20112
Author(s):  
Bilal Latif ◽  
Wim Voordeckers ◽  
Frank Lambrechts


Author(s):  
Kin-Wai Lee ◽  
Char-Lee Lok

Using a sample of listed firms in Malaysia, Philippines, Singapore and Thailand, this article examines the association between busy board of directors and firm performance. We offer three results. First, we find that firm performance (measured by operating profitability and market-to-book equity) is negatively associated with busy boards. Second, we find that firms with busy boards have higher operating risk (measured by volatility of return on assets, volatility of stock returns and volatility of operating cash flow). Third, we find that the association between firm performance and busy boards is conditional on the firm’s life cycle stage. For firms in the growth stage, busy boards are beneficial to firm performance suggesting that the experience knowledge and reputation accumulated with multiple directorships help busy directors to more effectively advise these firms. In contrast, for firms in the maturity stage of their life cycle, busy boards are detrimental to firm performance suggesting the monitoring role of board is weakened by multiple directorships.





2018 ◽  
Vol 5 (3) ◽  
pp. 299-314
Author(s):  
I Made Sudana ◽  
Elka Dwiputri

The purpose from this research is to test the effect from CEO characteristics towards firm performance. CEO characteristics was proxied with founder CEO, ownership, tenure, and education. Firm performance was proxied with Tobin’s Q. The sample from this research are every non-financial firm that have been listed in Indonesian Stock Exchange from 2010 – 2015 period. The method from this research is purposive sampling with analysis technique model multiple linier regression. The result from this research showed that founder CEO, CEO ownership, CEO tenure have a positive significant effect towards firm’s performance or Tobin’s Q.   Keywords : CEO Characteristics,  Firm Performance



2020 ◽  
Vol 7 (11) ◽  
pp. 291-301
Author(s):  
Wafa GHARDALLOU ◽  
◽  
Hela BORGI ◽  
Hibah ALKHALIFAH


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