scholarly journals Board, governance and firm performance: Are financial intermediaries different?

2011 ◽  
Vol 8 (2, Special issue) ◽  
pp. 60-68 ◽  
Author(s):  
Marina Brogi
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Financial Intermediaries ◽  
Board Governance ◽  
Return On Assets ◽  
Board Size ◽  
Financial Firms ◽  
The Board Of Directors ◽  
And Performance ◽  
The Relationship

Drawing on Agency Theory this article investigates the relationship between board size and European firms’ performance. The focus is on the implicit differences between financial and non-financial firms. In particular the paper addresses the following questions: does board size influence firm performance? Is financial intermediaries’ corporate governance different from that of non-financial companies? The study analyses the governance of the largest listed European companies which make up the Eurotop 100 index. Companies come from 12 different countries and are subject to different regulatory and self-discipline codes. Referring to the Eurotop index the focus is on the relation between the overall size of the board of directors and the level of performance measured as Tobin’s Q and Return on Assets. Diverging results emerge depending on the typology of the firm. In particular, results suggest that for non-financial companies large boards negatively influence firm performance, whereas financial intermediaries seem to be different because of the non-relation between their board size and performance.

scholarly journals Intellectual Capital and Firm Performance across Pakistani Industries

2021 ◽  
Vol 11 (4) ◽  
pp. 56
Author(s):  
Muhammad Ahmad ◽  
Rohani Mohd Rus
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Service Industries ◽  
Financial Firms ◽  
Generalized Methods Of Moments ◽  
Capital Efficiency ◽  
And Performance ◽  
Methods Of Moments ◽  
The Relationship

This study sheds light on the differences in intellectual capital (IC) efficiencies across non-financial sectors in Pakistan and determines the relationship between IC and firm performance. The study used sample of 155 non-financial firms from the manufacturing and service industries of Pakistan for the period 2009-2018. This study contributes to IC research by applying modified value-added intellectual capital (MVAIC) model with relationship to firm performance (return on assets and Tobin’s Q) of Pakistani non-financial firms which was overlooked by the previous researchers. In addition, to deal with endogeneity, the dynamic panel generalized methods of moments regression is applied to test the relationship between IC and performance. Findings provide evidence that different sectors in non-financial industries manage IC components differently. IC increases both market-based performance and accounting-based performance of Pakistani firms. Among all IC components, human capital efficiency is an important determinant of firm performance. The implication can provide help managers and investors to understand the IC to increase the firm performance.

scholarly journals Role of Board- Manager Relation on Cooperative Performance

2018 ◽  
Vol 6 ◽  
pp. 60-77
Author(s):  
Dhaneshwar Rakhal
Keyword(s):  
Board Of Directors ◽  
General Meeting ◽  
Interdisciplinary Studies ◽  
Return On Assets ◽  
Mutual Help ◽  
Secondary Sources ◽  
Wide Range ◽  
Credit Cooperatives ◽  
The Board Of Directors ◽  
The Relationship

Cooperatives are based on the philosophy of equality and mutual help i.e. 'All for each and each for all'. They cover a wide range of development services in Nepalese context. The members of a cooperative elect a board of directors in its general meeting for the day to day operation. The board prepares policy and procedures, and appoints manager(s) to implement the policies and run the program. One of the internal issues in saving and credit cooperatives is the relationship between managers and the board of directors which affects on the performance level of the cooperative. In this regard, the main objective of this paper is to assess the relationship between managers and the board of directors, and its impact on the performance of saving and credit cooperatives in Pokhara. The study also covers the managers' feelings of job satisfaction, career development opportunities, and responsibilities of board of directors and managers. Out of 212 savings and credit cooperatives in Pokhara Sub-metropolitan, 77 cooperatives were selected as sample. A questionnaire survey with the mangers was carried out to derive the primary information, and annual audited reports are used as secondary sources of data. The results indicate that board-manager relation does not affect the responsibilities of board of directors and managers, and academic qualifications of managers are positively related to performance of the cooperatives. Finally the paper concludes that the board manager relationship is positively related to return on assets of the cooperatives. Janapriya Journal of Interdisciplinary Studies, Vol. 6 (December 2017), page: 60-77

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN KELUARGA DI INDONESIA

2020 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Adhitya Rechandy Christian Santoso
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Board Of Directors ◽  
Sampling Method ◽  
Stock Exchange ◽  
Return On Assets ◽  
The Board Of Directors ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

This study discusses the application of corporate governance to the performance of family companies in Indonesia. The relationship of corporate governance in this study was proxied with an independent board of commissioners, the size of the board of directors, and the size of the audit board. The measurement of the financial performance of this study uses Return On Assets (ROA) with a sample of research companies listed on the Indonesia Stock Exchange in the 2014-2018 period.The sampling method in this study uses purposive sampling and data analysis using multiple linear regression with the help of SPSS 21.The results of data analysis, the proportion of independent commissioners and the size of the board of directors had a significant positive effect on the variable size of the audit board not having a significant effect.

scholarly journals Corporate law, board practices and value creation: Spanish evidence

2019 ◽  
Vol 1 (2) ◽  
pp. 8-20
Author(s):  
Elena Merino ◽  
Montserrat Manzaneque
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Relevant Literature ◽  
Gender Diversity ◽  
Board Governance ◽  
Corporate Board ◽  
Strategic Design ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship

Previous research suggests that boards of directors influence firm performance due to their role in activities such as strategic design and its implementation. From this perspective, many corporate governance researchers have tried to demonstrate empirically the impact of board characteristics on firm performance in different contexts. In this context, the objective of this work is to disclosure proven relationships between board governance variables and firm performance based on an analysis of relevant studies in Spain. Before a review of the relevant literature, we provide a legal overview of Spanish corporations and an analysis of corporate board practice in Spain (paying special attention to the composition of the boards of directors, the duality of the CEO and Chairman, gender diversity on boards and directors with multiple directorships). Following this, the analysis of the literature was carried out. The results show that in the majority of studies independent directors and CEO/Chairman duality have no relationship with firm performance. However, the proportion of women on the board of directors does show a positive relationship with firm performance. For the variable busy director, no conclusion can be established because the evidence found is scarce. We can conclude, therefore, that as a result of the inconclusive results as well as the scarcity of the study of some aspects for this field of study, further research on the relationship between the board and firm performance is necessary in the Spanish context.

scholarly journals The effectiveness of the internal corporate governance mechanism and the ownership of the government and agencies

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1655-1660
Author(s):  
Khaled Salmen Aljaaidi
Keyword(s):  
Board Of Directors ◽  
Negative Impact ◽  
Governance Mechanism ◽  
Board Size ◽  
Internal Governance Mechanisms ◽  
The Board Of Directors ◽  
The Government ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

This paper examines the impact of the government and its agencies’ ownership on the effectiveness of one the main internal governance mechanisms, namely; board of directors, for a sample of 140 energy and petrochemical Saudi listed firms over 2012-2019. The Saudi Arabia provides an interesting context due to the domination of government-linked corporations’ ownership. This setting arranges for the impact of such ownership on the board of directors’ monitoring and advisory roles. The board of directors’ effectiveness is measured as an interaction term of the board size and meetings of the board of directors. The study finds that government-linked energy and petrochemical corporations’ ownerships are inversely related to the board of directors’ effectiveness. This result is sensitive to the measurement of the board of directors’ effectiveness as each variable consisting of the board of directors’ effectiveness was examined individually. The study also finds that government-linked corporations’ ownership had a strong negative impact on the board size. In contrast, the proposed model does not provide any evidence supporting the relationship of the government-linked corporations’ ownerships with board meetings. Overall, the evidence supports the substitution hypothesis on the relationship of government-linked corporations and board of directors’ effectiveness.

scholarly journals A Thematic Review on Composition of Board of Directors (BOD) and Its Impact on Performance

NCC Journal ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 65-70
Author(s):  
Dipti Dhungel
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Corporate Boards ◽  
Corporate Governance Mechanisms ◽  
Thematic Review ◽  
And Performance ◽  
Main Component ◽  
The Relationship

This thematic paper has been prepared to find out how the composition of Board of Directors makes impact on performance of firms. To find this impact, the articles published in international journals have been reviewed. In addition to this detailed study of the legislator, the provision regarding composition of BOD in Nepal was made as stated in BAFIA and Company Act. The Board of Directorsis the elected members among the shareholders who could best represent the interest of each and every member. Corporate boards are one of the, if not the most important, internal corporate governance mechanisms that monitor and advise management in fulfilling the mandate to protect shareholder interests.There is still much debate as to the relationship between firm performance and boards of directors, which are arguably the main component of corporate governance.The thematic review concludes that the relationship between BOD and performance was not found on the basis of existing literature reviewed. Thus, the study opened the ground for the researcher to test this empirically.NCC JournalVol. 3, No. 1, 2018, Page: 65-70

scholarly journals The relationship between board size and firm performance

2021 ◽  
Vol 257 ◽  
pp. 02079
Author(s):  
Cao Chu Yan ◽  
Yang Zhi Hui ◽  
Liang Xin
Keyword(s):  
Board Of Directors ◽  
Negative Correlation ◽  
Corporate Performance ◽  
High Tech ◽  
Corporate Board ◽  
Board Size ◽  
The Us ◽  
The Board Of Directors ◽  
Empirical Research Methods ◽  
The Relationship

This paper selects 372 companies in the US S&P 500 from 2013 to 2017 as a sample, and uses empirical research methods to test the relationship between corporate board size and corporate performance. The results show that there is a negative correlation between the size of the board of directors and corporate performance; after dividing the sample into high-tech and non-high-tech industries, the results show that this negative correlation is more prominent in the high-tech field. After classifying the sample according to the parity of the number of directors, the results show that the odd number of directors is more effective than the even number of directors.

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 Firm Performance And Emerging Economies

2014 ◽  
Vol 30 (3) ◽  
pp. 701 ◽  
Author(s):  
Ramiz Ur Rehman ◽  
Junrui Zhang ◽  
Rizwan Ali
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Firm Size ◽  
Financial Ratios ◽  
Return On Assets ◽  
Macroeconomic Variables ◽  
Earnings Per Share ◽  
Significant Difference ◽  
And Performance ◽  
The Relationship

<p>The study explores the relationship between firm performance, macro-economic variables, and firm size. The analysis was conducted over a period of 12 years, for seven non-financial sectors of Pakistan economy, considering an emerging economy. The analysis was conducted stepwise. First estimation of models considering all co-efficient constant across time and individuals (Sector) was conducted. Secondly, to know the significant difference among the sectors with respect to firm size, return on assets, and earnings per share, we applied LSDV model and kept sectors constant. Lastly, we analyzed the time influence. The results of the study indicate that the size and performance of firms both depend upon financial ratios and macroeconomic variables included in the study. There is significant difference in terms of size and performance between all sectors. There is significant difference in terms of size and performance when measured between 2008 to 2010 and before.</p>

scholarly journals Remuneration, risk and performance in Italian companies: An empirical analysis on systems of remuneration in the board of Italian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 294-304
Author(s):  
Marco Artiaco
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Company Performance ◽  
Global Regulators ◽  
Academic Literature ◽  
The Board Of Directors ◽  
Recent Financial Crisis ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The recent financial crisis highlighted the issue of Board of Directors compensation, which had been analyzed by many authors. In fact, there is a vast academic literature on the impact of the compensation of Board of Directors on corporations characterized by the separation of ownership from control. The compensation of Board of Directors has been a subject of debate, also by global regulators like OECD, FSB, Central Bank of Italy and European Commission and many are pushing for an international uniform regulation. This paper aims to investigate the relationship between the board of Directors compensation, the company performance and the risks decided by the Board. The article analyses a sample of Italian listed companies in order to test wether or not the Board of Directors compensation structure could turn into a performance incentive, given the risk taken.

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