scholarly journals The relationship between board size, board composition, CEO duality and firm performance: Experience from Ghana

2007 ◽  
Vol 4 (2) ◽  
pp. 114-122 ◽  
Author(s):  
Anthony Kyereboah-Coleman ◽  
Nicholas Biekpe
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Agency Cost ◽  
Board Composition ◽  
Board Structure ◽  
Board Size ◽  
Clear Separation ◽  
Listed Firms ◽  
Data Framework ◽  
The Relationship

The paper examined board characteristics and its impact on the performance of non-financial listed firms in Ghana. Data covering 11 year period (1990-2001) was used and analysis conducted within the panel data framework. The study shows that most Ghanaian firms adopt the two-tier board structure and are largely non-independent. The regression results, though relatively mixed, confirm other studies and show that there should be a clear separation of the two critical positions of CEO and board chairman in order to reduce agency cost for enhanced firm performance.

scholarly journals Board Characteristics and Firm Performance: Case of Saudi Arabia

2012 ◽  
Vol 2 (2) ◽  
pp. 168 ◽  
Author(s):  
Mohammad Ahid Ghabayen
Keyword(s):  
Firm Performance ◽  
Audit Committee ◽  
Negative Relationship ◽  
Study Data ◽  
Annual Reports ◽  
Board Composition ◽  
Board Size ◽  
Board Characteristics ◽  
The World ◽  
The Relationship

ABSTRACTCorporate governance (CG) has received much attention in the current studies all over the world especially after many corporate scandals and the failures of some biggest firms around the world such as Commerce Bank (1991) Enron (2001), Adelphia (2002), and World Com (2002).The aim of this study is to examine the relationship between board mechanisms (audit committee size, audit committee composition, board size, and board composition) and firm performance (ROA) based on the annual reports of listed companies in the year 2011 of  sample of non-financial firms in the Saudi Market (Tadawul). For the purpose of this study, data was collected from a sample of 102 non-financial listed companies.Furthermore, an analysis of regression analysis is utilized to examine the relationship between board characteristics and firm performance. The results of this study reveal that audit committee size, audit committee composition and board size have no effect on firm performance in the selected sample while board composition has a significant negative relationship with firm performance.

scholarly journals Can board mechanism affect the firm value in Pakistan?

2009 ◽  
Vol 6 (3) ◽  
pp. 308-317 ◽  
Author(s):  
Mian Sajid Nazir ◽  
Shafaqat Ali ◽  
Abdul Haque
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Board Structure ◽  
Board Size ◽  
Positive Role ◽  
Performance Variables ◽  
Performance Factors ◽  
Governance Indicators ◽  
The Relationship

Corporate governance is, undoubtedly, extremely essential for the performance of the organizations. The structure of corporate ownership has significant impact on the external as well as internal performance factors of firms. The relationship between corporate governance indicators and firm performance has been extensively investigated; however, a little work has been done on how the structure of board can add value to the firm. This paper sheds light on the relationship of some aspects of board structure like board size, board composition, and CEO duality with the performance variables Tobin’s Q and Return on Assets (ROA) by using a sample of 53 firms of cement and sugar sectors of Pakistan for a period of 2005-2007. The results indicate that the firms perform better with moderate board size and the performance is adversely affected if CEO also acts as chairperson of board of directors whereas the external directors can play a positive role for firm performance in Pakistan.

Relationship between Corporate Governance Index and Firm Performance: Indian Evidence

2018 ◽  
Vol 19 (3) ◽  
pp. 675-689 ◽  
Author(s):  
Akshita Arora ◽  
Shernaz Bodhanwala
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Metrics ◽  
Market Competition ◽  
Board Structure ◽  
Data Set ◽  
Listed Firms ◽  
Market For Corporate Control ◽  
Governance Index ◽  
The Relationship

The Indian corporate governance norms have been evolving over a period of time but limited number of studies have been undertaken with reference to corporate governance index (CGI) in the Indian context. The study aims to examine the relationship between CGI and firm performance. We construct CGI using important parameters of governance such as board structure, ownership structure, market for corporate control and market competition. Our panel data set comprises of listed firms and the estimation analysis has been carried out using random effects method. The study reveals significant positive relationship between CGI and firm performance metrics. CGI is an important and causal factor in explaining firm performance. The investors would also have positive perception about business firms maintaining high governance standards, thus reducing possible funding costs.

scholarly journals Corporate Governance Quality, Ownership Structure, Agency Costs and Firm Performance. Evidence from an Emerging Economy

2020 ◽  
Vol 13 (7) ◽  
pp. 154
Author(s):  
Haroon ur Rashid Khan ◽  
Waqas Bin Khidmat ◽  
Osama Al Hares ◽  
Naeem Muhammad ◽  
Kashif Saleem
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Agency Cost ◽  
State Ownership ◽  
Ownership Concentration ◽  
Listed Firms ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

The purpose of this paper is to investigate the effect of corporate governance quality and ownership structure on the relationship between the agency cost and firm performance. Both the fixed-effects model and a more robust dynamic panel generalized method of moment estimation are applied to Chinese A-listed firms for the years 2008 to 2016. The results show that the agency–performance relationship is positively moderated by (1) corporate governance quality, (2) ownership concentration, and (3) non-state ownership. State ownership has a negative effect on the agency–performance relationship. Various robust tests of an alternative measure of agency cost confirm our main conclusions. The analysis adds to the empirical literature on agency theory by providing useful insights into how corporate governance and ownership concentration can help mitigate agency–performance relationship. It also highlights the impact of ownership type on the relationship between agency cost and firm performance. Our study supports the literature that agency cost and firm performance are negatively related to the Chinese listed firms. The investors should keep in mind the proxies of agency cost while choosing a specific stock. Secondly; the abuse of managerial appropriation is higher in state-held firms as compared to non-state firms. Policymakers can use these results to devise the investor protection rules so that managerial appropriation can be minimized.

scholarly journals Board of Directors’ Size and Firm Performance: Evidence from Non-Financial French Firms Listed on CAC 40

2020 ◽  
Vol 15 (2) ◽  
pp. 46-61
Author(s):  
Hemza Boussenna
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Board Of Directors ◽  
Random Effects ◽  
Fixed Effects ◽  
Optimal Number ◽  
Board Size ◽  
The Relationship ◽  
Positive Effect

AbstractThe study aims to investigate the relationship between board size and firm’s performance for a sample of non-financial French firms listed on the CAC 40 between 2005 and 2017. We estimated the firm’s performance using two types of metrics, the accounting-based measures (ROA and ROE) and the market-based measures (Tobin Q and MTB). By applying the panel data regressions (fixed-effects and random-effects), the findings show that there is a positive effect of board size on firm performance. In addition, our results show that the optimal number of the board size should be between 13 and 17 members in order to achieve good performance for non-financial French firms.

scholarly journals Board Size and Firm Performance: Case of Kuwait

2021 ◽  
Vol 23 (1) ◽  
pp. 5-21
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Firm Performance ◽  
Performance Measures ◽  
Stock Exchange ◽  
Board Size ◽  
Listed Firms ◽  
Kuwait Stock Exchange ◽  
Empirical Tests ◽  
The Relationship

This study examined the relationship between board size and firm performance using a sample of 110 non-financial listed firms on the Kuwait Stock Exchange (KSE) from 2009 to 2017 (9 years). Empirical tests were conducted using OLS and 2SLS regressions as well as two performance measures to control the issues of endogeneity and causality; the study found that board size negatively affected firm performance. Thus, a small board size is better for non-financial Kuwaiti listed firms, which is consistent with agency theory and the majority of previous studies conducted in developed and developing countries. However, the causality issue does exist. The study makes a number of contributions to the corporate governance literature—namely, it provides a good understanding of the relationship board size and firm performance. In addition, examining such variables without considering the issues of endogeneity and causality would lead to misleading results. Finally, this study provides clear evidence for regulators in Kuwait to design an optimal board size to improve listed firms.

scholarly journals Does Board Composition Matter? The Relationship Between Board Characteristics and Financial Performance: Evidence From Chinese Listed Agricultural Companies

2021 ◽  
Vol 12 (1) ◽  
pp. 177
Author(s):  
Oleh Pasko ◽  
Fuli Chen ◽  
Jianping Wang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Analysis ◽  
Board Composition ◽  
Board Independence ◽  
Board Structure ◽  
Specific Context ◽  
Institutional Settings ◽  
The Relationship ◽  
Made In

The paper aims to make new insight to some of the contradicting findings in prior studies of the board structure–firm performance relationship and to assess this connection in the specific context of Chinese listed agricultural companies practice. The study investigates the data of Chinese agricultural listed companies from 2008 to 2017, using multiple regression authors examine the relationship between board characteristic and financial performance. Conducted by authors empirical analysis shows that CEO duality and board size are significantly positively correlated with financial performance (proxies - ROA, ROE, and EPS). Although, contrary to the findings made in Western institutional settings the paper’s results testify that board independence has no significant impact on financial performance in China. The study’s findings enrich the understanding of linkage “board structure–firm performance”, especially in China – institutional settings that have proved to differ in many ways from other jurisdictions. Additionally, the paper provides an in-depth synthesis of research into this linkage to the date.

scholarly journals The Influence Of CEO Departure And Board Characteristics On Firm Performance

2015 ◽  
Vol 31 (2) ◽  
pp. 345 ◽  
Author(s):  
Lanouar Charfeddine ◽  
Mohamed Arouri ◽  
Frederic Teulon
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Significant Relationship ◽  
Board Size ◽  
Board Characteristics ◽  
Informal Associations ◽  
Performance Results ◽  
The Relationship

This paper uses panel data from 271 U.S. firms to empirically examine the relationship between the departure of a firms CEO and that firms performance. Results of our analysis reveal a significant relationship between CEO departure and firm performance. Specifically, we found that the departure of entrenched CEOs negatively affects current and future firm performance. Results also demonstrate that board size and the presence of independent administrators moderates the relationship between CEO departure and firm performance. This suggests that entrenched CEOs can have informal associations with independent administrators.

Family firms, board structure and firm performance: evidence from top Indian firms

2017 ◽  
Vol 59 (5) ◽  
pp. 699-717 ◽  
Author(s):  
R. Rathish Bhatt ◽  
Sujoy Bhattacharya
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Independent Directors ◽  
Family Management ◽  
Family Ownership ◽  
Board Structure ◽  
Board Size ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose Given the prevalence of family-run businesses in India, this paper aims to empirically investigate the impact of family firms on the relationship between firm performance and board characteristics. The effectiveness of board characteristics such as independent directors, chairman independence, role duality, non-executive directors, board busyness, board size, board meetings and board attendance are studied in the Indian context. Design/methodology/approach The sample consists of top-listed firms in India for the period 2002 to 2012. Board index was constructed to capture the governance quality of the firm. The authors also study the relationship between board structure and firm performance by segregating the sample based on family management, family ownership and family representative directors. Random effects model was used for the regression analysis in the study. Findings The authors find a negative effect of board structure on firm performance in family firms compared to non-family firms. Contrary to the most Western literature, family management was not found to significantly affect firm performance as compared to that of professionally managed firms. In the subset analysis of family firms, higher proportion of family ownership and family representative directors did not show any significant impact on the firm performance. Having a higher proportion of independent directors, larger board size or an independent chairman does not appear to improve this insignificant relationship between family firms and firm performance. Also, in family firms, no significant difference in performance is noticed before and during recession period. Originality/value The study uses a self-defined corporate governance index to measure the governance parameters, specifically the board characteristics. The results documented in this study adds to the debate on the generalizability of the findings in Western governance studies in emerging markets like India with unique institutional development background.

scholarly journals Corporate governance and firm performance: Evidence from Ghanaian listed companies

2007 ◽  
Vol 4 (2) ◽  
pp. 123-132 ◽  
Author(s):  
Anthony Kyereboah-Coleman ◽  
Charles K.D. Adjasi ◽  
Joshua Abor
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Governance Structures ◽  
Board Structure ◽  
Board Size ◽  
Firm Level ◽  
Mean Values ◽  
Listed Firms ◽  
Tier System

Well governed firms have been noted to have higher firm performance. The main characteristic of corporate governance identified include board size, board composition, and whether the CEO is also the board chairman. This study examines the role corporate governance structures play in firm performance amongst listed firms on the Ghana Stock Exchange. Results reveal a likely optimal board size range where mean ROA levels associated with board size 8 to 11 are higher than overall mean ROA for the sample. Significantly, firm performance is found to be better in firms with the twotier board structure. Results show further that having more outside board members is positively related to firm performance. It is clear that corporate governance structures influence firm performance in Ghana, indeed within the governance structures the two-tier board structure in Ghana is seen to be more effective in view of the higher firm level mean values obtained compared to the one-tier system.

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