Board gender diversity, board compensation and firm performance. Evidence from Jordan

Purpose This study aims to analyze the relationship between board gender diversity, board compensation and firm financial performance in the developing country, Jordan, whose cultural, economic and institutional context is very different from most previously analyzed countries’ context. Design/methodology/approach Ordinary least squares regression was used to examine the association between board gender diversity, board compensation and firm financial performance in a sample of 510 firm-year observations during the years 2009–2018. Generalized least squares estimation method was used to confirm that the results are robust. Findings The author provides new evidence that board gender diversity does not contribute to firm financial performance. The author also detects that there is a positive relationship between board compensation on firm financial performance. Originality/value This paper examines the under-researched relationship between board gender diversity, board compensation and firm financial performance. In so doing, the author tries to provide new insights into this relationship within the developing context, the case of Jordan that has a different environment from that of advanced markets. To the best of the researcher’s knowledge, this is almost certainly the first research to investigate the impact of board gender diversity and board compensation on firm financial performance in the Jordanian market. This manuscript is expected to be used as a reference by the regulators and policymakers – both in Jordan and other countries with a similar institutional, cultural setting – to provide a deep understanding of the impact of board gender diversity and board compensation on the firm performance.

The Impact of Corporate Governance Practices on the Firm Financial Performance of the Non-Financial Firms

The study focuses on whether the Corporate Governance characteristics influence the firm performance of Non-Financial Firms in Pakistan. In this study, three types of industries like pharmaceutical, cement, and food were analyzed from the Pakistan Stock Exchange for the period of 2010 to 2019. The authors used the diagnostic test on data that argued that the model is better, like the fixed effect model or random-effect model for analysis. Multiple regression-based methodologies were developed to use a fixed-effect model for both dependent variables, Return on Assets and Tobin-Q variables, to discover the association between corporate governance and firm performance. It is concluded that board size, board education board experience, board nationality and board compensation have significant the ROA and board size, board experience, the board size, and board compensation shows significance with Tobin-Q.

Contrasting Incentives for Earnings Management: Board Activity and Board Remuneration in Spanish Firms

We analyze the effect board activity and board remuneration has on earnings management (EM). Our results show that more active boards are inefficient in preventing earnings manipulation. Regarding board compensation we find a U-shaped relation indicating that excessive remuneration will lead to more earnings management. Policy recommendations are derived from the findings.

Corporate Governance and Firm Performance in India: An Empirical Research

The point of the exploration is to look at the relationship among corporate administration and firm execution. In this examination study board information of S&P BSE-100 listed organizations from 2011-2018 and LSDV board information model, 2SLS model are utilized as instruments for investigation of the information. Where Market to Book worth and Tobin Q are taken as the needy variable while size of the board, freedom with the board; compensation given for the board, advertiser shareholding are considered as autonomous factors. The result of the examination uncovers that great corporate administration practices actualized by organizations are decidedly identified with money related execution. The finding of the examination uncovers that littler sheets are probably going to be progressively proficient in observing execution (Fuerst and Kang 2000; Loderer and Peyer 2002). The present examination affirms that there is a negative relationship among board freedom and execution of the firm and higher level of outside executives negatively affect firm execution (Yermack, 1996; Klein, 1998).

Board Remuneration Transparency: A Pre and Post Analysis of MCCG 2017

Purpose – This study investigates the impact of the three main determinants of strengthening board remuneration through Board Remuneration Committee Composition, Remuneration Composition of Directors and Top Five Senior Management Remuneration compared between pre and post MCCG 2017.Design/methodology/approach – In order to analyze the reporting of Board compensation committee composition, compensation composition of directors and top five Senior Management Remuneration, the research will follow the purposeful technique of sampling followed by descriptive statistic, regression analysis and content analysis obtained from MCCG 2012 and MCCG2017 together with prior research findings.Originality/value – This study is a systematic review of recent research developments in MCCG 2012 and MCCG 2017. The scoring index designed for Board Remuneration Committee Composition, Remuneration Composition of Directors and Top Five Senior Management Remuneration could also be applied to other PLCs other than the Malaysian oil and gas industry.

Corporate governance structures and firm performance in large agriculture companies in New Zealand

PurposeThis study aims to explore the role of corporate governance (CG) characteristics on the financial performance of large agricultural companies in New Zealand. External auditor remuneration and board characteristics, such as board ownership, board compensation, board independence and board gender diversity, are addressed in the context of New Zealand’s agricultural companies by applying agency theory.Design/methodology/approachThis paper uses a balanced panel data generalised least square regression analysis on 80 firm-years of observations over the period from 2012 to 2015.FindingsEmpirical analysis revealed that external auditors’ remuneration and board characteristics, such as board compensation and board independence, except for board ownership and board gender diversity, held no association with the agricultural companies’ performance. While board ownership and board gender diversity were negatively, but significantly, associated with firm performance, these results were pronounced in the listed agricultural companies rather than in the non-listed companies.Research limitations/implicationsThis study encountered limitations commonly associated with the majority of industry-specific studies, i.e. small sample size and lack of published financial information from databases. Therefore, for generalisation, these limitations were considered relevant.Practical implicationsThe results of this research project are beneficial for authorities and agricultural company directors in implementing CG principles and guidelines to empower such companies in international competition. Encouraging agricultural companies to maintain a high level of transparency in financial reporting is of central interest for the government’s economic development, and stock market investors achieve a high level of transparency in non-financial disclosures, the chief objective of this study. Finally, the results of this paper may encourage auditors to scrutinise CG disclosures by agricultural companies in more detail, looking for undisclosed information.Social implicationsThe results of this paper may encourage managerial transparency by providing appropriate disclosures for the public benefit. Investors may benefit from the disclosure provided in their economic decision-making and the public may expand on the information disclosed in facilitating development through exports, expansion of foreign investments and the indigenous economy.Originality/valueThe findings contribute to the literature by providing novel and original insights into using a sample of listed and non-listed agricultural companies to extend the current understanding of the governance-performance nexus.