Empirical Research on Board Structure and Corporate Performance Stability

Purpose The purpose of this paper is to investigate the link between board structure and performance of public companies in Russia – an emerging market with unique institutional background and a variability of corporate governance (CG) practices across its companies. Design/methodology/approach Panel data analysis was applied on a sample of 207 Russian companies that frequently traded in the Russian Trading System during the period 2007-2011, in order to test hypotheses on the relationships between board size, board independence, gender diversity, presence of board committees and financial performance, as measured by Tobin’s Q. Findings The results show a positive relationship between Tobin’s Q and the board’s gender diversity. The analysis demonstrates that smaller and bigger boards are associated with a greater Tobin’s Q value. Originality/value The findings provide additional evidence of how board structure is related to its effectiveness and corporate performance in countries with concentrated ownership, highly variable CG practices and a lack of proper implementation of corporate law and governance codes. The paper contributes to the existing empirical evidence on the advantages of small and large-sized boards and on gender diversity, and is the first investigating the relationship between Russian companies’ board committees and market-based performance. The results regarding board independence and committees suggest that these mechanisms are still not widely recognized for their role in CG and company performance in Russia.

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The Empirical Research on Corporate Governance and Corporate Performance in Chinese Listed Company

2009 International Conference on Information and Financial Engineering ◽

10.1109/icife.2009.13 ◽

2009 ◽

Author(s):

Long Dong ◽

Yan Wen-jia

Keyword(s):

Corporate Governance ◽

Empirical Research ◽

Corporate Performance ◽

Listed Company

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Empirical Research of Large Shareholders' Overweight (Underweight) Behavior on Corporate Performance: Based on the Empirical Data of Chinese Listed Companies

2011 International Conference on Information Management, Innovation Management and Industrial Engineering ◽

10.1109/iciii.2011.354 ◽

2011 ◽

Author(s):

Ren Lijun

Keyword(s):

Empirical Research ◽

Empirical Data ◽

Corporate Performance ◽

Listed Companies ◽

Chinese Listed Companies ◽

Large Shareholders

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Board Structure and Corporate Performance: A Causal Analysis of Select Indian Companies

Prabandhan Indian Journal of Management ◽

10.17010//2011/v4i11/62647 ◽

2011 ◽

Vol 4 (11) ◽

pp. 44

Author(s):

Diksha Kakkar ◽

Garima Kamboj

Keyword(s):

Corporate Performance ◽

Causal Analysis ◽

Board Structure

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Trends on the relationship between board size and financial and reputational corporate performance

European Journal of Management and Business Economics ◽

10.1108/ejmbe-02-2018-0029 ◽

2018 ◽

Vol 27 (2) ◽

pp. 183-197 ◽

Cited By ~ 6

Author(s):

Luis Antonio Orozco ◽

Jose Vargas ◽

Raquel Galindo-Dorado

Keyword(s):

Empirical Evidence ◽

Corporate Reputation ◽

High Performance ◽

Resource Dependence ◽

Corporate Performance ◽

Resource Dependence Theory ◽

Board Structure ◽

Board Size ◽

Content Type ◽

The Relationship

Purpose The purpose of this paper is to investigate the relationship between board size (B-SIZE) and financial and reputational corporate performance in top companies ranked by the Business Monitor of Corporate Reputation – MERCO in Colombia. Design/methodology/approach This paper conducts correlations and cluster analysis in order to classify firms based on performance and control variables, using a sectional sample of 84 large companies in Colombia over the period 2008-2012. Findings This research founds that large boards are associated with high performance on corporate reputation, as stated by the resource dependence theory, and a low-financial performance, as predicted by the agency theory. However, the results indicate that there is no relation between financial and reputational performance. Research limitations/implications This research considered only large companies listed by MERCO. Therefore, the results can only be generalized for top firms in Colombia according to this list. However, results add empirical evidence to theoretical debate between B-SIZE and firm performance considering financial and reputational indicators. Practical implications According to the OECD manual of good corporate governance practices, the optimal B-SIZE has between five to nine core members. The board structure has a direct impact over the firm’s financial and reputational performance and must be carefully analyzed by shareholders to balance the size according to expected results and firm’s features like family ownership, exportation activities and norms of stock markets. Originality/value This paper contributes to the existing literature on the relationship between B-SIZE and corporate performance with the evaluation of financial and reputational results for the case of an emerging economy. In Latin America, this analysis must go beyond OECD recommendations, and shall consider the context of an emerging country based on empirical evidence.

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