scholarly journals Diversity Matters: A Study on the Relationship between Board Career Diversity and Firm Performance

2021 ◽  
Vol 13 (17) ◽  
pp. 9674
Author(s):  
Daniel Sungyeon Kim ◽  
Hong Kee Sul
Keyword(s):  
Firm Performance ◽  
Capital Expenditures ◽  
Board Members ◽  
Board Composition ◽  
Return On Equity ◽  
Core Business ◽  
Equity Compensation ◽  
Board Directors ◽  
The Relationship ◽  
Positive Effect

Are shareholders better off hiring directors with in-depth specialties in the company’s core business or hiring directors with broader perspectives? This study addresses the question by investigating the relationship between directors’ career diversity and firm performance. It employs Tobin’s Q, total shareholder return, and return on equity as measures of firm performance. Accordingly, board career diversity has a significant and positive effect on firm performance. Moreover, we find that board directors with diverse industry experiences create value for firms via advisory (e.g., R&D and capital expenditures) and monitoring (e.g., equity compensation) roles. Given that diversity in career matters, corporations can seriously consider board composition and promote career diversity among board members.

Board Composition as a Linkage with Environmental Change during Financial Crisis: A Case of Korean Bank Industry

2010 ◽  
Vol 11 (2) ◽  
pp. 49-67
Author(s):  
Jiyeon Kim ◽  
Dong Kee Rhee ◽  
Namgyoo Park ◽  
Hyojung Kim
Keyword(s):  
Firm Performance ◽  
Financial Crisis ◽  
Environmental Change ◽  
Board Of Directors ◽  
Board Members ◽  
Board Composition ◽  
Relational Capital ◽  
Political Background ◽  
Personal Expertise ◽  
The Relationship

This study looked into the process of a firm actively adapting to the environmental shift and generating good performances by acquiring relational capital as well as personal expertise through the board members. The effect of board composition measured, specifically focusing on personnel with political background, accounting specialists, and foreign company related personnel. The results indicate that firms under extreme environmental change actively utilize their network of board of directors, and such efforts substantially affect firm performance. The implication of this study is in that it empirically verified the relationship between board composition and firm performance based on resource.

scholarly journals The effect of national cultural differences of board members on integrated reporting

2018 ◽  
Vol 14 (1) ◽  
pp. 7-21 ◽  
Author(s):  
Simona Alfiero ◽  
Massimo Cane ◽  
Ruggiero Doronzo ◽  
Alfredo Esposito
Keyword(s):  
Cultural Differences ◽  
Critical Mass ◽  
Cultural Dimensions ◽  
Board Members ◽  
Cultural Dimension ◽  
Integrated Reporting ◽  
Independent Variables ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

This research, based on stakeholder theory and the national cultural dimensions, aims to test the influence of foreigners on board and its size on Integrated Reporting (IR) practices. The analysis is based on a sample of 1,058 European companies from 18 different countries, who adopted or not the IR for the year 2015, and it relies on a Logit. The dependent variable is a dummy (presenting or not the IR) and the independent variables are represented by the board characteristics (foreigners and size). The impact of the critical mass on the presence of foreigners and the cultural dimension on the basis of directors’ nationality was tested relying on the masculinity/femininity dimension of Hofstede. Besides, the directors’ country of origin was considered, namely if they belong to the major European countries presenting a wider IR diffusion. The relationship between foreigners on board and IR is found to be negative. This means that companies with at least one foreigner are less inclined to adopt IR. The results show that the boards with more of three foreign administrators have a major propensity to adopt the IR. The membership of the directors in countries with a feminist culture also has a positive effect.

scholarly journals Ownership And Firm Performance: The Experience Of Saudi Arabias Emerging Economy

2011 ◽  
Vol 8 (8) ◽  
Author(s):  
Abuzar M. A. Eljelly
Keyword(s):  
Saudi Arabia ◽  
Firm Performance ◽  
Stock Market ◽  
Market Performance ◽  
Return On Assets ◽  
Private Companies ◽  
Return On Equity ◽  
Net Profit ◽  
The Government ◽  
The Relationship

This study examines the relationship between firm ownership and corporate performance in Saudi Arabia, using a sample of Listed Private Companies (LPCs) and Listed Government Related Companies (LGRCs). The study compares the operating and market performance of the LPCs and LGRCs during the period 2000-2003 and found that, in general, LGRCs outperform or match the performance of LPCs. More specifically, the study finds that LGRCs tend to mostly outperform LPCs in terms of profitability, as measured by Return on equity (ROE) and Net Profit Margin (NPM), operating efficiently, as measured in terms of Return on assets (ROA), and match them in their stock market risk adjusted performance. The study concludes that these results may have implications for the issue of privatization programs which the government has recently started.

scholarly journals Corporate Governance And Its Effect On Firm Performance In An Emerging Economy

2022 ◽  
Vol 2 (3) ◽  
pp. 281-291
Author(s):  
Langa Esmael KAREM ◽  
Hawkar Anwer HAMAD ◽  
Hakar Abubakir BAYZ ◽  
Naji Afrasyaw FATAH ◽  
Diary Jalal ALI ◽  
...  
Keyword(s):  
Financial Performance ◽  
Business Processes ◽  
Board Members ◽  
Board Composition ◽  
Return On Assets ◽  
Board Size ◽  
Cross Sectional ◽  
The Impact ◽  
The Relationship ◽  
Board Ownership

Having a board of directors is very important to ensure the smooth running of business processes and have an impact on the company's financial performance. This study to determine the impact of board characteristics namely board size, board ownership and board composition on the financial performance of organizations as measured by Return on Assets. The study employed a descriptive-explanatory research design based on a cross-sectional approach. Correlation and regression analyses were conducted to determine the depth and extent of the relationship between the variables. The study revealed a positive and significant association between the board size and financial performance on an average of 9 board members. Board composition revealed that having more external directors had no effect on the financial performance, it neither increased it nor decreased it, leading to the rejection of the hypothesis. On the other hand, board ownership was found to be beneficial in terms of having directors as owners of the business, corroborating the Stakeholder Theory. The studies showed that there was still a need to select board members with caution striking a balance between the number of directors as well as their composition to ensure that the organization reaps maximum benefits from the board.

scholarly journals The effect of diversification on firm performance: Evidence from Listed Companies in Vietnam

2021 ◽  
Vol 9 (02) ◽  
pp. 2072-2180
Author(s):  
Dai Long Khuc ◽  
Thi Thu Bui ◽  
Quynh Mai Ha
Keyword(s):  
Firm Performance ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Listed Companies ◽  
Ceo Duality ◽  
Return On Equity ◽  
Independent Variables ◽  
Negative Effect ◽  
And Gender ◽  
The Relationship

The study was conducted to investigate the relationship between diversification on Board and firm performance. The investigation has been performed using panel data procedure for a sample of 204 Vietnamese listed companies in two different groups: Large cap and Mid cap, listed in HOSE and HNX during the period of five years from 2015 to 2019. The study uses three performance measures (including return on equity, return on asset, Tobin’s Q) as dependent variable. The independent variables for measurement of diversification on Board are the number of females and the diversification for Supervisory Board are the number of females only. Other independent variables are average age of Board member, CEO duality and the number of independent directors. The results indicated that firm performance have positive relationship with nationality diversity on Board and gender diversity on Supervisory Board. CEO duality shows a significant result of negative effect on firm performance.

The impact of board composition on firm performance in the restaurant industry

2017 ◽  
Vol 29 (8) ◽  
pp. 2121-2138 ◽  
Author(s):  
Sujin Song ◽  
Hubert B. Van Hoof ◽  
Sungbeen Park
Keyword(s):  
Firm Performance ◽  
Restaurant Industry ◽  
Operational Performance ◽  
Board Members ◽  
Board Composition ◽  
Stewardship Theory ◽  
Outside Directors ◽  
Content Type ◽  
Restaurant Firms ◽  
The Impact

Purpose This study aimed to investigate the impact of the board composition on financial performance in the restaurant industry from a stewardship theory perspective. Design/methodology/approach The composition of board was measured as the ratio of inside and outside directors. Firm performance was operationalized as return on assets (operational performance) and Tobin’s q (market-based performance). Panel regression analysis tested the research hypotheses. Findings Using data from 25 restaurant firms from 2007 to 2013, the study found an insignificant impact of board composition on operational performance. However, a higher proportion of inside board members increases market-based performance. A higher proportion of outside board members decreases market-based performance. Practical implications Supporting the basic tenets of stewardship theory, restaurant companies may consider changing the current practice of having a super-majority of outside directors and increase the inside board members. Because inside board member have greater experience with the organization and the industry, they have a better understanding of the status quo and are better able to respond to opportunities and threats in the environment. Originality/value Considering the scarcity of research on how the board composition affects firm performance in the hospitality context, the present study is a forerunner in its exploration of the impact of inside and outside directors on restaurant firms’ performance.

scholarly journals The Association of Board Composition, Intellectual Capital and Firm Performance in a High Ownership Concentration Context: Evidence from Italy

2016 ◽  
Vol 11 (10) ◽  
pp. 317 ◽  
Author(s):  
Stefania Veltri ◽  
Romilda Mazzotta
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Ownership Structure ◽  
Capital Market ◽  
Ownership Concentration ◽  
Board Composition ◽  
Firm Efficiency ◽  
Management Literature ◽  
Sophisticated Model ◽  
The Relationship

<p>The association of Corporate Governance (CG) with Firm Performance (FP) has always been an issue relevant to management literature. Nevertheless, the notable heterogeneity of studies and their mixed results highlight the opportuneness of continuing to investigate the association of CG with FP. The article aims to contribute to this research by building and employing a sophisticated model to take into account beyond the  board composition ownership structure and firm efficiency in using its intellectual capital (as measured by VAIC<sup>TM</sup>). The findings provide evidence that the board composition, the ownership concentration and the efficiency of intellectual capital increases firm efficiency in producing profits (as measured by ROA). Furthermore, our findings add knowledge to the relationship between CG and FP, by confirming a positive relationship in Italy, a continental European capital market under-investigated on this issue.</p>

An Empirical Study of the Relationships between Information Systems Strategy and Firm Performance

2011 ◽  
Vol 217-218 ◽  
pp. 5-8
Author(s):  
Bao Liang Hu
Keyword(s):  
Decision Support ◽  
Firm Performance ◽  
Process Performance ◽  
Significant Positive Effect ◽  
Business Decision ◽  
Network Embeddedness ◽  
Is Strategy ◽  
Outcome Performance ◽  
The Relationship ◽  
Positive Effect

This paper examines the relationship between the information systems(IS) strategy and firm performance. It discovers the relationship between each dimension of IS strategy and firm performance, that is, business action support dimension, business decision support dimension and network embeddedness support dimension all show significant positive effect on firm performance. On the other hand, it discovers the different effect of the different IS strategy dimensions working on the firm performance. That is, business action support dimension has the significant positive effect not only on the process performance but also on the outcome performance. Business decision support dimension only has the significant positive effect on the process performance but not on the outcome performance. Network embeddedness support dimension just has the significant positive effect on the outcome performance but not on the process performance.

Impact of Research and Development on Firm Performance

2014 ◽  
Vol 4 (1) ◽  
pp. 357 ◽  
Author(s):  
Aimen Ghaffar ◽  
Waseem Ahmed Khan
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Return On Assets ◽  
Return On Equity ◽  
Positive Correlation ◽  
Important Concept ◽  
Independent Variables ◽  
Earnings Per Share ◽  
The Impact ◽  
The Relationship

This study has been conducted to see the impact of research and development budget on the performance of the firms. Research and development is an increasingly important concept in order to have success in this era. The paper finds out the relationship between research and development and firm performance. Firm performance is measured through the ratios of return on assets, return on equity and the earnings per share of the firms. The data analyzed by using SPSS. Results confirmed the positive correlation between the dependent and the independent variables. Limitations of the study were shortage of time and studying of a single sector. In future, different other sectors can be studied to see the impact of research and development on their 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.

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