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1
AFAM-MEBEI BLESSING OMEBERE and EBIAGHAN, Orits Frank. "EMPIRICAL NEXUS BETWEEN CORPORATE GOVERNANCE ATTRIBUTES AND DIRECTORS REMUNERATION: NIGERIAN EVIDENCE." Finance & Accounting Research Journal 4, no. 3 (2022): 58–75. http://dx.doi.org/10.51594/farj.v4i3.385.
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This study is aimed at investigating the relationship between corporate governance attributes and director’s remuneration in Nigerian quoted firms. Specifically the study attempted to proffer answers to questions as it relates to the impact of board size, firm size, board independence, chief executive officer duality on directors' remuneration. Secondary data were extracted from the financial statements and accounts of the sampled firms for a 25years period spanning 1997-2021. And analyzed using Ordinary Least Squares Regression (OLS) E-views version 10 The study revealed that Board size, firm size, and board independence exerted positive effect on directors' remuneration, whereas the presence of a chief executive officer duality had negative influence on directors' remuneration. It was recommended that the position of Companies and Allied Matters Act (CAMA) 2020 as it concerns directors’ remuneration should be carefully adhered to and that the directors' remuneration must not be altered by any director irrespective of their positions in the organization. It is concluded that the chief executive officer duality should not be used as a yardstick in the determination of directors’ remuneration rather the board size, firm size, board independence should be used as a measure for fixing directors’ remuneration.
 Keywords: Director’s Remuneration, Board Size, Firm Size, Board Independence, Chief Executive Officer Duality.
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Meiliana, Meiliana, and Iven Julia. "Analisis Pengaruh Struktur Dewan Direksi terhadap Kinerja Perusahaan." Global Financial Accounting Journal 6, no. 1 (2022): 170. http://dx.doi.org/10.37253/gfa.v6i1.6683.
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Purpose - This study aims to determine the effect of the board structure on company performance. This study has 6 independent variables, which consist of the size of the board of directors, independent directors, board of directors meetings, board of directors education, female directors, and managerial ownership.
 Research Method - The sample used in this research is quantitative data with a purposive sampling technique. Based on the criteria, the samples collected from 473 companies in the period 2014-2018. The sample data is tested using panel data regression.
 Findings - This study concludes that all the independent variables have no significant effect on company performance. Board of directors still needs to be controlled to achieve good performance. Independent directors rarely interfere on other director decision. Board of director’s meetings only incurs unnecessary expenses. Board of director's education is just a qualification. Women's board of directors in each country could have difference effect because of cultural differences. There are still many directors in public companies that do not have ownership in the company, so there is still no visible effect on managerial ownership.
 Implication - The findings of this study imply that corporate governance still needs to be strengthened to improve company performance. There are still many problems within the company due to poor governance.
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Refakar, Mohammad, and Ming-Ming Lai. "An investigation of board directors’ absence and its determinants in the Malaysian stock market." Corporate Ownership and Control 8, no. 2 (2011): 259–70. http://dx.doi.org/10.22495/cocv8i2c2p3.
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This paper examines the relation between directors’ absence in board meetings as an indicator of directors’ busyness with possible determinants of director absence on the constituent companies of FTSE Bursa Malaysia KLCI index from 2005 to 2008. This study has found board size as the strongest determinant of directors’ absence. As the size grows, there is higher probability of directors to be absent from board meetings. This study found a board size of 9 and less as an optimum board size. We also found that the more independent directors on the board, the less absence they made. The results showed that the number of multiple directorships a director holds, number of annual meetings, age, and ethnicity of the director are not significant determinants.
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Cho, Sangjun, and Chuneyoung Chung. "Board Characteristics and Earnings Management: Evidence from the Vietnamese Market." Journal of Risk and Financial Management 15, no. 9 (2022): 395. http://dx.doi.org/10.3390/jrfm15090395.
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This study empirically analyzes the relationship between Vietnamese firms’ earnings management, board characteristics, and ownership structures. I use board size and the proportion of outside directors to reflect board characteristics, and the ownership percentages of the board of directors, outside directors, and the chief executive officer (CEO) to reflect the ownership structures. I use discretionary accruals, measured by the modified Jones model, to proxy for earnings management. From analyzing firms listed on the Ho Chi Minh and Hanoi Stock Exchanges from 2012 to 2017, I find that board size and the ownership percentages of outside directors and CEOs are negatively related to earnings management, whereas the board of directors’ ownership percentage is positively related. The proportion of outside directors is not significantly associated with earnings management. This study provides policy insights for improving Vietnamese firms’ financial transparency. Specifically, corporate laws regulating board composition should be enacted to ensure that all firms meet a minimum number of board members. Moreover, a policy mandating boards to include independent outside directors is necessary, as establishing an independent outside director system within Vietnam’s corporate law can strengthen the sustainability of the board of directors.
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Ardillah, Kenny. "The Impact of Characteristics, Independence, Diversity, and Activities of the Board of Director on the Sustainable Development Goals Disclosure." Dinasti International Journal of Education Management And Social Science 4, no. 2 (2023): 210–22. http://dx.doi.org/10.31933/dijemss.v4i2.1584.
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The role of the board of director is very important in disclosing the Sustainable Development Goals because most of the company's leadership with a higher number of directors, the existence of independent directors, directors with diversity, and an adequate number of board of director meetings can determine the company's sustainability strategy. This study aims to analyze the commitment of the board of director to Sustainable Development Goals disclosure in public companies by proving the influence of characteristics (size of the board of director), independence (proportion of independent directors), diversity (presence of female directors), and activity of the board of director (number of board of director meetings) on Sustainable Development Goals disclosure. This research is a quantitative research with documentation as data collection method. The sample of this research is a financial sector public company listed on the Indonesia Stock Exchange from 2019-2021. The data analysis method used in this study is multiple linear regression with the panel data approach. The results of this study are that there is a positive effect of the presence of directors at board of director meetings on the disclosure of Sustainable Development Goals which has been controlled by profitability and firm size. The results of other studies are that there is no effect of the size of the board of director, the proportion of independent directors, the presence of female directors, and the number of board of director meetings on the Sustainable Development Goals disclosure which have been controlled by profitability and firm size.
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Onipe, Adabenege Yahaya, and Garba Mohammed Shuaibu. "Does Board of Directors Improve Profitability?" Accounting 8, no. 2022 (2022): 269–75. https://doi.org/10.5281/zenodo.7025697.
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This analyzes whether or not there is a correlation between board of directors and profitability. For the purpose of this analysis, data is derived from firms listed on the trading floor of the Nigerian Exchange Group. The findings of a pooled ordinary least square regression analysis indicate that board meetings, independence, and board size may not lead to better profitability. Moreover, the results show that board meeting is negatively associated with profitability. Independent members do not provide additional efficiency required for better profitability. As for board size, the findings indicate that larger boards are associated with lower profitability. The findings provide insights into the effect of board size on firm profitability. The results are of interest to regulators, decision makers, policymakers and investors.
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Intan Nurwanti, Tiara Putri Hendrian, Rifati Nabila, and Henny Setyo Lestari. "Ownership Structure, Board Characteristics, Dan Dividen Policy Pada Perusahaan Manufaktur Yang Terdaftar di BEI." Jurnal Ekonomi 27, no. 1 (2022): 16–33. http://dx.doi.org/10.24912/je.v27i1.851.
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This study aims to determine the effect of ownership structure, board characteristics on dividend policy. The research sample is a manufacturing company listed on the Indonesia Stock Exchange for the 2016-2020 period. The independent variables are institutional ownership, ownership concentration, board of directors size, female board of directors ratio, independent board ratio, the dependent variable is dividend policy and the control variables are company age, firm size, financial leverage, return on assets (ROA). The number of samples in this study were 30 manufacturing companies using purposive sampling technique. Panel data regression shows that the size of the board of directors, the ratio of the board of directors has a positive effect on dividend policy, institutional ownership, ownership concentration, the ratio of independent boards has no effect on dividend policy. It is hoped that the research results will provide input for companies and investors to consider institutional ownership, concentration of ownership, size of the board of directors, the ratio of women's board of directors, and the ratio of independent boards because they have an influence on dividend policy.
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de Villiers, Charl, Vic Naiker, and Chris J. van Staden. "The Effect of Board Characteristics on Firm Environmental Performance." Journal of Management 37, no. 6 (2011): 1636–63. http://dx.doi.org/10.1177/0149206311411506.
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This study investigates the relationship between strong firm environmental performance and board characteristics that capture boards’ monitoring and resource provision abilities during an era when the natural environment and the related strategic opportunities have increased in importance. The authors relate the proxy for strong environmental performance to board characteristics that represent boards’ monitoring role (i.e., independence, CEO-chair duality, concentration of directors appointed after the CEO, and director shareholding) and resource provision role (i.e., board size, directors on multiple boards, CEOs of other firms on the board, lawyers on the board, and director tenure). The authors provide evidence consistent with both theories of board roles. Specifically, consistent with their agency theory–driven predictions, the authors find evidence of higher environmental performance in firms with higher board independence and lower concentration of directors appointed after the CEO on the board of directors. Consistent with resource dependence theory, they show that environmental performance is higher in firms that have larger boards, larger representation of active CEOs on the board, and more legal experts on the board. Their findings are generally robust to a number of sensitivity analyses. These findings have implications for managers, firms, shareholders, and regulators who act on behalf of shareholders, if they are interested in influencing environmental performance.
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Garner, Jacqueline, Taek-yul Kim, and Won Yong Kim. "Boards of directors: a literature review." Managerial Finance 43, no. 10 (2017): 1189–98. http://dx.doi.org/10.1108/mf-07-2017-0267.
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Purpose The purpose of this paper is to present a literature review of research on board size, structure, and independence. The paper also reviews research on director voting, and discusses recent work on “busy” directors and board diversity. Design/methodology/approach The authors limited the review to a focused set of research areas. Findings The authors summarize the research on boards of directors and note that research on this important topic should continue. Originality/value This review is intended to summarize the literature on boards of directors.
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Witono, Banu, Widowati Dian Permatasari, and Dewita Puspawati. "Accounting Conservatism: Gender Diversity Accounting Conservatism: Gender Diversity and Educational Background on the Board of and Educational Background on the Board of Directors and Commissioner." Riset Akuntansi dan Keuangan Indonesia 8, no. 1 (2023): 72–82. http://dx.doi.org/10.23917/reaksi.v8i1.22641.
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This research aimed to analyze the effect of the board director’s characteristics and the board of commissioners toward accounting conservatism. The characteristics analyzed in this research were size, gender, and educational background that affect their behavior in dealing with issues related to accounting principles. This research will be conducted by analyzing all companies listed on the Indonesia Stock Exchange in 2017-2019 using SPSS. Data was analyzed as 112 data using multiple regression analysis. The results show that both size of directors and commissioner’s and women of board director and commissioners affect the accounting conservatism. However, the educational background of board directors and commissioners does not affect accounting conservatism.
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Voveris, Donatas, Julija Savicke, and Greta Drūteikienė. "Characteristics of the boards of directors at firms listed on Nasdaq Baltic." Problems and Perspectives in Management 21, no. 3 (2023): 726–35. http://dx.doi.org/10.21511/ppm.21(3).2023.56.
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The board of directors plays a pivotal role in firm governance, endorsing strategic choices, coordinating operations, ensuring regulatory compliance, and furnishing organizational support. This paper aims to examine the characteristics of the boards of directors and the guidelines for board composition in publicly listed firms in the Baltic countries. The analysis consists of two stages. The first is a quantitative investigation of the attributes of boards (board size, CEO duality, gender diversity, foreign directors, board committees, board independence, and directors’ occupational background) targeting 35 firms and 187 directors. The second is a qualitative analysis of guidelines for board composition of Nasdaq Baltic-listed firms in Estonia, Latvia, and Lithuania. The results reveal that the attributes of boards of directors do not raise concerns. Despite their relatively smaller scale in contrast to the United States or Europe, the boards of Nasdaq Baltic companies align effectively with their respective firm sizes. Notably, CEO duality is absent in Estonian and Latvian listed firms, while it is only partially evident in Lithuania. Moreover, directors’ heterogeneous professional backgrounds distinctly contribute to these boards’ overall enhancement. While the existence of board committees is strongly recommended, they are primarily implemented as a tool for controlling.
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Al-Saidi, Mejbel. "Boards of directors and firm performance: A study of non-financial listed firms on the Kuwait Stock Exchange." Corporate Ownership and Control 18, no. 2 (2021): 40–47. http://dx.doi.org/10.22495/cocv18i2art3.
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Prior to 2017, there were no corporate governance rules in Kuwait. The previous rules were silent regarding boards of directors, shareholders’ rights, disclosure, and auditing. However, at the beginning of 2017, the Kuwaiti government introduced new governance rules and required all firms listed on the Kuwait Stock Exchange (KSE) to comply with these rules. This study examined the impact of boards of directors on firm performance following the implementation of these new rules using a sample of 89 non-financial listed firms from 2017 to 2019. The study used four board variables – namely, board size, board independence, family directors, and board diversity – and found that, based on Tobin’s results, board size, board independence, and board diversity significantly impact firm performance whereas the ROA results indicate that only family directors significantly impact firm performance
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Corbetta, Guido, and Carlo A. Salvato. "The Board of Directors in Family Firms: One Size Fits All?" Family Business Review 17, no. 2 (2004): 119–34. http://dx.doi.org/10.1111/j.1741-6248.2004.00008.x.
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Boards of directors are governance bodies that serve important functions for organizations, ranging from monitoring management on behalf of different shareholders to providing resources. Board roles and characteristics vary widely among national cultures and, within each country, among different company types. Despite such variety, research on family business boards has been dominated by prescriptions and by the lack of an explicit recognition of family firm types characterized by different governance requirements. We argue that a contingency approach to defining board structure, activity, and roles offers useful guidance in understanding board contributions to family business performance. We develop a theory to show how board characteristics are a reflection of a family firm's power, experience, and culture makeup. This theory provides insight into descriptions of existing board choices and prescriptions for family firms interested in starting or adapting their board of directors.
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Nguyen, Hoa, and Robert Faff. "Impact of board size and board diversity on firm value: Australian evidence." Corporate Ownership and Control 4, no. 2 (2007): 24–32. http://dx.doi.org/10.22495/cocv4i2p2.
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The aim of this paper is to provide a preliminary analysis of the relationship between firm market value and the size and gender diversity of a board of directors for a sample of publicly listed Australian firms. Our results show that smaller boards appear to be more effective in representing the shareholders as smaller boards are associated with higher firm value. As board size increases firm value declines, however at a decreasing rate suggesting that the relationship between board size and firm value is not strictly linear. Our findings further indicate that gender diversity promotes shareholders’ value as the presence of women directors is associated with higher firm value
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Belkhir, Mohamed. "Board of directors' size and performance in the banking industry." International Journal of Managerial Finance 5, no. 2 (2009): 201–21. http://dx.doi.org/10.1108/17439130910947903.
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PurposeThis paper aims to investigate the relationship between board size and performance in a sample of 174 bank and savings‐and‐loan holding companies, over the period 1995‐2002.Design/methodology/approachIn order to examine the relationship between board of directors' size and performance in the banking industry, the paper uses various statistical tools, including panel univariate analyses and panel data techniques.FindingsContrary to theories predicting that smaller boards of directors are more effective, increasing the number of directors in banking firms does not undermine performance. In contrast, the evidence is in favor of a positive relationship between board size and performance, as measured by Tobin's Q and the return on assets. The paper investigates whether this positive association is due to the fact that banks reduce the number of their directors in the aftermath of poor performance by testing for the relationship between board size and performance. The findings show that the number of directors leaving the board and the number of those joining the board for the first time increase following a poor performance, but the net change in board size is not affected by past performance.Research limitations/implicationsThe paper recognizes that a number of factors that are not controlled for in this study might be behind the positive empirical association between board size and the performance measures used.Practical implicationsThe results of this study suggest that the calls to reduce the number of directors in banks might have adverse effects on performance.Originality/valueThis paper contributes to the banking literature by investigating the relationship between an important governance mechanism, the board of directors, and performance in banking firms.
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Risma, Nurilhidayah, and Wijayanti Rita. "The Effect of Characteristics and Activities of the Board Of Directors on the Sustainable Development Goals disclosure (Empirical Study on the 100 Largest Companies in Indonesia for the 2020-2021 Period)." International Journal of Business Management and Technology 6, no. 6 (2023): 328–37. https://doi.org/10.5281/zenodo.7687495.
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This study aims to analyze the director's commitment to the Sustainable Development Goals (SDGs) by looking at the influence of directors' characteristics and activities on SDGs disclosure. The characteristics of the board of directors analyzed in this study include the size of the board of directors, the proportion of expertise of the board of directors, the presence of female directors, and the presence of foreign directors. The activities analyzed include the number of board meetings held in one year and the percentage of attendance of the board of directors at meetings. The context of this study is the 100 largest companies in Indonesia according to fortune Indoneia for the 2020-2021 period. This study shows that the size of the board of directors and the number of meetings of the board of directors positively affect the disclosure of the SDGs. This suggests that the number of board directors can drive more intensive SDG disclosures, and companies with high meetings are also likely to have higher SDGs disclosure rates.
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Chiyachantana, Chiraphol N., Siripen Pattanawihok, and Pattarawan Prasarnphanich. "BOARD COMPOSITION, BOARD DIVERSITY AND STOCK PERFORMANCE." International Journal of Business & Economics (IJBE) 6, no. 2 (2021): 76–87. http://dx.doi.org/10.58885/ijbe.v06i2.076.cc.
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The study investigates the relationship between six board compositions and stock returns. The results indicate a significant association between various board compositions and stock returns. Specifically, board size and executive directors have a negative impact, whereas independent directors enhance stock returns. Busy directors positively impact the abnormal stock returns for the companies in the non-financial industry, which implies that busy directors who serve on more boards tend to be well connected. More importantly, the results indicate a significant positive relationship between board tenure and stock returns. Board service time is perceived as the board quality of knowledge and experience from the investors’ point of view.
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Eklemet, Ivy, Ibrahim Mohammed, Emmanuel Gyamera, and Deborah Adu Twumwaah. "Moderating Role of Board Size between the Board Characteristics and the Bank’s Performance: Application of GMM." International Journal of Economics and Financial Issues 13, no. 3 (2023): 145–57. http://dx.doi.org/10.32479/ijefi.14495.
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The paper examines the moderating role of board size between board characteristics and the bank’s performance. The study collected data from 18 licensed banks in Ghana from 2012 to 2020, giving 180 observations for this study. The study adopted the System Generalized Method of Moments to assess the causal relationship between board characteristics and the bank's performance in Ghana. The Generalized Method of Moments was adopted in this study to control the problems of endogeneity and unobserved heterogeneity issues. The findings show a significant relationship between board characteristics (non-executive directors, directors share ownership, and board gender diversity) and bank performance. The results also indicate that the board size moderates the positive relationship between board characteristics and the bank's performance. Nonetheless, the interaction effect was stronger for the director's share ownership than other board characteristics. The findings highlight that the board size moderates or enhances the relationship between board characteristics and the bank's performance. Therefore, board size is an essential criterion for promoting gender diversity and non-executive directors on the board. Based on the results, the study recommends strengthening the board with competent non-executive directors and female directors to enhance the independence and effectiveness of the board to prevent opportunistic behaviors of managers espoused through agency theory.
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Paul, Donna L. "Board changes following mergers." Corporate Ownership and Control 5, no. 3 (2008): 67–74. http://dx.doi.org/10.22495/cocv5i3p8.
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This study documents an overall increase in board independence and size following completed mergers. The increase in board size is positively related to the size of the target firm, suggesting either that large targets have bargaining power to negotiate inclusion of their directors on the board of the merged firm, or that high target director representation is perceived to be vital in mergers of equals. The change in board independence is positively related to post-merger cash flow difficulty, suggesting that independent directors are more likely to be added if the firm faces financial constraints.
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Nurudeen, Samaila, Suleiman Rafindadi, and Adabenege Yahaya Onipe. "Corporate Boards and Leverage Decisions." Accounting Forum 47, no. 2 (2023): 307–26. https://doi.org/10.5281/zenodo.8308153.
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ABSTRACT This study explores how leverage decisions of firms are influenced by the boards of directors of 129 listed firms on the Nigerian Exchange, over a period of five (5) years (2017 to 2021). Leverage decisions are measured by total liabilities to total assets, while corporate boards are measured by board independence, board female gender, board size, board meetings and board ownership. After firm size and audit quality are controlled, we find that board female gender and board size negatively and significantly influence the degree of leverage among listed firms in Nigeria. However, we document that board independence, meetings and ownership are not significant in relation to leverage decisions. These findings suggest that both board female gender and board size are important. These results are important to regulators, boards of directors, board committees, market participants, lenders, shareholders, managers, employees, suppliers, and customers. The study is limited by the number of samples. It is expected that further research can increase the total sample of companies by adding to the research period or using all the 156 listed firms on the Nigerian Exchange.
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Garg, Ajay Kumars. "Influence of Board Size and Independence on Firm Performance: A Study of Indian Companies." Vikalpa: The Journal for Decision Makers 32, no. 3 (2007): 39–60. http://dx.doi.org/10.1177/0256090920070304.
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Corporate governance issues have attracted a good deal of public interest because of their apparent importance for the economic health of corporations and society in general, especially after the plethora of corporate scams and debacles in recent times. Corporate governance issues flow from the concept of accountability and governance and assume greater significance and magnitude in the case of corporate form of organization where the ownership and management of organizations are distanced. And, it is in this context that the pivotal role played by the board of directors in maintaining an effective organization assumes much importance. A major part of the debate on corporate governance centres around board composition especially board size and independence. Various committees have mandated a minimum number of independent directors and have given guidelines on board composition. However, the relationship of board characteristics such as composition, size, and independence with performance has not yet been established. This paper addresses this question: Does the board size and independence really matter in terms of influencing firm's performance? The findings suggest that: There is an inverse association between board size and firm performance. Different proportions of board independence have dissimilar impact on firm performance. The impact of board independence on firm performance is more when the board independence is between 50 and 60 per cent. Smaller boards are more efficient than the larger ones, the board size limit of six suggested as the ideal. Independent directors have so far failed to perform their monitoring role effectively and improve the performance of the firm. The guidelines on corporate governance should take into account the ‘cross-board’ phenomenon while defining the criteria for eligibility for appointment as an independent director. Lack of training to function as independent directors and ignorance of the procedures, tasks, and responsibilities expected of them could be reasons for the independent directors' non-performance. A bad performance leads to an increase in board size, which in turn, hampers performance. Guidelines are provided for future studies to include different variables to see which board composition is suitable for different companies at different stages of life cycle.
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Hendi, Hendi, and Shella Shella. "Karakteristik Dewan Direksi, Komite Audit, dan Biaya Audit." E-Jurnal Akuntansi 32, no. 11 (2022): 3318. http://dx.doi.org/10.24843/eja.2022.v32.i11.p09.
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This study aims to examine the influence of the board of directors and the audit committee characteristic on audit fees. The independent variables were the size of the board of directors, the independence of the board of directors, women on the board of directors, the size of the audit committee, the independence of the audit committee, the financial expertise of the audit committee, the diligence of the audit committee, and women on the audit committee. The research population includes financial sector companies listed on the Indonesia Stock Exchange in 2017-2021. The sample consists of 208 observations which were determined through purposive sampling. Data were analyzed by panel data regression. The analysis results showed that the size of the board of directors and the diligence of the audit committee had a significant positive influence on audit fees. Other variables have no significant effect on audit fees.
 Keywords: Audit Committee; Audit Fee; Board of Director; Financial Sector
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Belhaj, Salma, and Cesario Mateus. "Corporate governance impact on bank performance evidence from Europe." Corporate Ownership and Control 13, no. 4 (2016): 583–97. http://dx.doi.org/10.22495/cocv13i4c4p8.
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This paper investigates the impact of corporate governance on European bank performance during the period 2002-2011. Using a sample of 73 banks from 11 European countries, we examine the relationship between corporate governance measures more specifically the board size and composition, the gender diversity and the CEO duality on the European bank performance. During the period 2002-2011, our results show that the board size and the gender diversity have a positive and significant impact on bank performance. Large board of directors with more female members led to better bank performance, whereas, the board composition and the CEO duality have no significant effect in explaining the bank performance for the European countries. During the global financial crisis, our findings show that the board size and the board composition are negatively and significantly correlated to the bank performance. Smaller boards of directors with less number of independent (non-executive) directors have outperformed the ones with larger boards and more independent directors during the crisis. However, the gender diversity and the CEO duality have no significant impact on the European bank performance.
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Bonn, Ingrid. "Board Structure and Firm Performance: Evidence from Australia." Journal of Management & Organization 10, no. 1 (2004): 14–24. http://dx.doi.org/10.1017/s1833367200004582.
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ABSTRACTThe influence of corporate governance on firm performance has been discussed for a number of years, but mainly in a United States and European business context. This article investigates the composition of boards of directors in large Australian firms and analyses whether board structure has an impact on performance, as measured by return on equity and market-to-book value ratio. The results showed that outsider ratio and female director ratio were positively associated with firm performance, whereas board size and directors' age had no influence on firm performance.
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Bonn, Ingrid. "Board Structure and Firm Performance: Evidence from Australia." Journal of the Australian and New Zealand Academy of Management 10, no. 1 (2004): 14–24. http://dx.doi.org/10.5172/jmo.2004.10.1.14.
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ABSTRACTThe influence of corporate governance on firm performance has been discussed for a number of years, but mainly in a United States and European business context. This article investigates the composition of boards of directors in large Australian firms and analyses whether board structure has an impact on performance, as measured by return on equity and market-to-book value ratio. The results showed that outsider ratio and female director ratio were positively associated with firm performance, whereas board size and directors' age had no influence on firm performance.
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Lee, Kin-Wai, and Cheng-Few Lee. "Cash Holdings, Corporate Governance Structure and Firm Valuation." Review of Pacific Basin Financial Markets and Policies 12, no. 03 (2009): 475–508. http://dx.doi.org/10.1142/s021909150900171x.
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Firms with higher board independence, smaller boards, and lower expected managerial entrenchment, have lower cash holdings. We find that the positive association between cash holdings and managerial entrenchment is mitigated by stronger board structures. Specifically, in firms with higher expected managerial entrenchment, those with higher proportion of outside director on the board and smaller board size have lower cash holdings. We also find that firm value is negatively associated with cash levels. The negative association between firm value and cash holdings is more pronounced in firms with (i) lower proportion of outside directors, (ii) larger boards and (iii) higher expected managerial entrenchment. For firms with both high cash holdings and high expected managerial entrenchment, investors additionally discount the valuation of firms with lower proportion of outside directors and those with larger boards.
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Lawal, Sulaiman, Idris Abdulwahab Anas, and Adabenege Yahaya Ph.D. Onipe. "Board of Directors and Auditor Choice in Nigeria." South Asian Journal Finance 3, no. 1 (2023): 38–59. https://doi.org/10.5281/zenodo.8287238.
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<strong>ABSTRACT</strong> Purpose: This study interrogates the tie between board of directors and the choice of the external auditor by 129 listed firms in Nigeria. Design/Methodology/Approach: Board of directors was represented using board independence, board female gender, board size, board meetings and board ownership. The Big4 methodology was utilized to assess auditor choice using binary analysis. This study collects balanced panel data from 129 listed firms over a five-year period, from 2017 to 2021. All the data were provided by MachameRatios(®). Findings: Test results suggest that board female gender, size, meetings and ownership have significant relationship with auditor choice. However, board independence and size exhibit no significant associations with auditor choice. Moreover, the mean value of auditor choice is .555 points for the 129 listed companies in Nigeria, over the five years (2017-2021). Originality: This study contributes to the process of choosing external auditor by companies in Nigeria. It provides value to the company's board of directors, board audit committee members and management in order for them to make better judgments on which external auditor(s) to engage. The results have ramifications for regulatory agencies, market participants, shareholders, lenders, and corporate boards. This study suffers from some limitations. First, the data is from 129 listed firms, over a period of five-years (2017-2021). Second, board of directors’ proxies are limited to five: board independence, board female gender, board size, board meetings and board ownership. Other board characteristics such as expertise, remuneration, busyness, education, and committees are not included. Third, the results are applicable to the sample, Nigerian publicly companies, and emerging countries with similar institutional framework like Nigeria.
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Deschenes, Sebastien, Hamadou Boubacar, Miguel Rojas, and Tania Morris. "Is top-management remuneration influenced by board characteristics?" International Journal of Accounting & Information Management 23, no. 1 (2015): 60–79. http://dx.doi.org/10.1108/ijaim-11-2013-0062.
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Purpose – The purpose of this article is to examine if certain board characteristics have an impact on the total remuneration of top management and the ratio of stock-based remuneration to total top-management remuneration. Design/methodology/approach – The study draws on data from the largest public Canadian companies, the constituents of the TSX/60 index. The study controls for firm size and profitability. Findings – The authors concludes that total remuneration of top management is directly linked to board-member total remuneration and the board average number of director-tenure years. The study also shows that the ratio of stock-based to total top-management remuneration is positively affected by the percentage of independent directors, total remuneration of board directors, the ratio of stock-based remuneration of directors to their total remuneration and the average number of tenure years of the board of directors. Practical implications – If regulators are determined to curb the excesses in top-management remuneration by means of promoting boards with certain characteristics, they should implement measures facilitating the control of directors’ remuneration and tenure, to discourage cronyistic behavior. Good corporate governance requires that the board act as a counterbalance to top management, ensuring that a substantial percentage of top-executive total compensation is variable, and not fixed. According to our findings, the boards that are the most likely to hold managerial avoidance of variable pay in check are those favoring director independence, variable director remuneration and longer director tenures. Social implications – The present article examines specifically the latter aspect, namely, the role of board characteristics (independence, size, compensation, board director ownership and tenure, etc.) in the determination of top-management compensation. This relationship is important because it allows us to further the analysis of corporate governance. If the above-mentioned traits of boards have a meaningful relationship with the compensation of the top management, one might conclude that certain practices in the composition of boards could influence good corporate governance practices. This is relevant for regulatory agencies, for investors and for corporations. Originality/value – The article adds to the extant literature in a number of ways. Firstly, it considers the role of the traits of the board in the determination of the compensation of the top-management teams, and not only of the chief executive officer, as is the focus of previous literature. Secondly, the article focuses on the power interplay between boards and managers, and, more particularly, on the ability of boards to be an effective mechanism of corporate governance. Finally, the article examines the potential impact of board traits in the determination of top-management compensation in the context of Canadian firms, a subject that has received less attention from academic research, which has mostly concentrated on analyzing the issue in the US context.
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Mohammed, Maidugu Umar, and Adabenege Yahaya Ph.D. Onipe. "Board of Directors and Bankruptcy Risk Using GMM Approach." Applied Finance and Accounting 9, no. 1 (2023): 242–56. https://doi.org/10.5281/zenodo.8267593.
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Motivated by agency theory, we investigate how a firm's overall quality of board of directors reduces its bankruptcy risk. Using 129 listed firms over a period of five (5) years (2017-2021) sample of firms with boards’ data from the MachameRatios, we find that firms with stronger boards exhibit a higher ability to reduce bankruptcy risk. Board of directors’ characteristic show mix results, for example, board independence, board female gender, board size show negative significant effects; board meetings (positive) and board ownership (negative) show insignificant effects. In terms of the three control variables, leverage, firm size and big4 show negative significant effects. The results are consistent with the notion that shareholders of firms with better boards quality are able to force managers to take measures to avoid or reduce bankruptcy risk, thereby ensuring that the going concern remains in place. We employ the Generalized Method of Moments approach to cope with possible endogeneity and still obtain consistent results. Our results are important as they show that corporate boards’ quality does have a palpable impact on critical corporate phases such as bankruptcy risk. This study suffers from some limitations. First, the study sample is limited to only 645 observations. However, this is due to the number of listed firms with balanced data of the Nigerian Exchange. Second, the study period ended in 2021. Third, although this study examines the effect of corporate boards, not all board aspects have been examined in the study model. Nevertheless, this paper is significant to regulators, market players, banks, shareholders, corporate boards, management, lenders (creditors), and a number of other stakeholders. It offers empirical evidence for both policy improvement, performance improvement, future research and it provides additional body of knowledge.
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Meah, Mohammad Rajon, and Nasir Uddin Chaudhory. "Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation." Indian Journal of Corporate Governance 12, no. 1 (2019): 71–93. http://dx.doi.org/10.1177/0974686219836544.
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This article aims to investigate the impact of corporate governance through board size, female directors, family duality and director ownership on firm’s profitability in Bangladesh. It’s a quantitative study on 110 manufacturing firms listed in Dhaka Stock Exchange. Multivariate pooled Ordinary Least Square (OLS) regressions are applied on 512 sample-year observations from the year 2013 to 2017 to test the hypotheses in the study. On one side, the results reveal that larger board size and female directors on board are positively associated with firm’s profitability, which in turns helps to enhance firm’s profitability. On the other side, it is also found in the results that percentage of shares held by the directors and family duality are negatively related to firm’s profitability and thus reduces firm performance. The outcomes of this study advocate the policymakers to formulate a policy by addressing the percentage of shares held by the directors to be kept at a certain level.
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Alias, Norazlan, Mohd Hasimi Yaacob, and Nahariah Jaffar. "Does Governance Structure Matter In Post-Spinoff?" 11th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES 11, no. 1 (2020): 34. http://dx.doi.org/10.35609/gcbssproceeding.2020.11(34).
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This study examines corporate governance role in the post spinoff from the perspective of the new entity or spinoff firm. Using yearly data of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange) listed firms that announced and completed their spinoff exercises, for the period of 1994 to 2015. We focused on the new entity or spinoff firm's governance structure represented by board size, number of independent director and director's ownership. No variables were significant in direct effect term but the number of independent directors and percentage of directors' ownership respectively interact positively significant with debt ratio on firm performance measured by return on assets (ROA). This study recommends more board of directors' ownership and independent directors respectively for the new entity to optimize its capital structure policy as reflected in firm's debt ratio as shown by an increase in firm performance following a spinoff. In other words, an increase in board of directors'ownership and independent directors in board composition would negate risk associated with increasing debt in firm's capital structure. Keywords: Board Structure, Ownership Structure, Spinoff
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Cullinan, Charles P., Lois Mahoney, and Pamela B. Roush. "Entrenchment vs long-term benefits: classified boards and CSR." Journal of Global Responsibility 10, no. 1 (2019): 69–86. http://dx.doi.org/10.1108/jgr-11-2018-0063.
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PurposeAlthough most corporate directors face reelection by shareholders each year, directors of companies with classified boards are elected for multiple-year terms. Classified boards may engender managerial entrenchment, which may make directors less responsive to shareholders’ interest in corporate social responsibility (CSR). Alternatively, classified boards may engender a longer-term focus, which could make the board more willing to engage in projects with longer-term benefits, such as CSR. This study aims to assess whether larger boards, with potentially more diverse voices, may be positively related to CSR, and a larger board may change the classified boards/CSR relationship.Design/method/approachThe authors examine the relationship between board type (companies with and without classified boards), board size and CSR for 4,489 firm-years (1,540 with classified boards and 2,949 without classified boards) from 2013 through 2015.FindingsThe authors find no difference in CSR strengths between companies with and without classified boards, but the authors do find that companies with classified boards have more CSR concerns than companies without classified boards. For all types of boards, a larger board size is associated with more CSR strengths and reduces the negative impact of having a classified board on CSR concerns.Practical implicationsClassified boards may be less responsive to shareholders’ preference for reduced company CSR concerns, but an increase in board size can mitigate this effect.Social implicationsClassified boards may weaken a company’s CSR performance.Originality/valueThis is the first paper to consider the relationship between classified board and CSR.
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Mardianto, Mardianto, and Chintia Chintia. "Analisis Karakteristik Dewan Direksi dan Struktur Kepemilikan terhadap Manajemen Laba Perusahaan di BEI 2016-2020." Owner 6, no. 1 (2022): 269–81. http://dx.doi.org/10.33395/owner.v6i1.556.
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This study aims to investigate the influence of women's boards of directors on earnings management. The dependent variable in this study is earnings management using the Discretionary Accruals measurement method with the Modified Jones Model. The independent variables used are women board of directors, board size, board independence, audit quality, family ownership, blockholder ownership, leverage, Return on Assets (ROA), and firm size. This study used a data sample of 381 companies with the period of 2016 to 2019 with a purposive sampling method. The research data tested by panel regression testing using Eviews and SPSS application. The results of this study are women board of directors, board size, board independence, audit quality, family ownership, blockholder ownership, and firm size do not have a significant effect on earnings management. Meanwhile, leverage has a significant negative effect on earnings management and Return on Assets (ROA) has a significant positive effect on earnings management.
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Barone, Gerhard, Kent Hickman, and Mark Shrader. "Board Changes in Response to Extremes in Performance." Journal of Finance Issues 10, no. 2 (2012): 24–29. http://dx.doi.org/10.58886/jfi.v10i2.2310.
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This study contrasts changes in board structure in firms at the extremes of industryadjusted performance. We find pervasive changes in board size, composition, and director pay for firms whose stock market performance ranks in the uppermost and lowest deciles of industryadjusted returns over the period 2001-2005. Our evidence shows that these companies tended to change their board’s size, added outsiders to the board, and increased director pay. Significant differences between the two groups are documented, with poor performers making more dramatic changes in all three of these governance metrics. We failed to find changes in other structural characteristics such as classified boards and shareholdings of directors.
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Hamdouni, Amina. "Ownership, board structure, and corporate performance: Evidence of French VC-backed firms." Corporate Board role duties and composition 6, no. 3 (2010): 7–20. http://dx.doi.org/10.22495/cbv6i3art1.
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The purpose of this paper is to examine the effect of ownership structure and board structure on performance in VC-backed firms. Using 106 French VC-backed firms, our methodology in this paper is to estimate four equations. A regression analysis is then used to study the impact of ownership structure and board structure on performance and also to analyze whether ownership structure (ownership concentration, director ownership, venture capital ownership and employee ownership) and board variables (size, outside directors, COE-chairman duality, proportion of VC directors, proportion of employee directors and board meeting frequency) are significant determinants of VC-backed firm performance. Results indicate a strong positive relation between ownership concentration and performance and between director ownership and performance measured by ROE. And strong negative relation between ownership concentration and performance and between director ownership and performance measured by ROA. No strong relation was found between venture-capital ownership, employee ownership and firm performance. Results show also a strong negative relation between board size and performance measured by ROE and positive relation between board size and performance measured by ROA, Tobin’s Q and MVA. The proportion of independent outside directors on the board was positively associated with ROE and negatively associated with ROA. The presence of a dual leadership structure is negatively associated with ROE and positively associated with ROA. No strong relation was found between the proportion of venture-capital in board, the presence of employee in board, or board meeting frequency and firm performance.
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KOUAKEP, Olive Stéphanie, and SHUPO Davine Myskinole CHEGUEM. "Characteristics of the Board of Directors and Performance of Family Businesses in Cameroon." International Journal of Business Management and Technology 6, no. 1 (2023): 50–61. https://doi.org/10.5281/zenodo.7674167.
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Based on contractual theories of the firm, this paper aims to verify whether there is a link between the characteristics of the board of directors (the presence of independent directors, the size of the board of directors,executive compensation)and performance. The latter, is measured from two perspectives: the financial and social performance. With an available sample of 50 family firms from the cities of Yaoundé, Douala and Bafoussam, the data were subject to descriptive statistics andmultiplelinearregressions. In general, our results showed that there is a positive link between the independentboard directors, the executive compensationand performance. But, the size of this board director is not critical
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Pujakusum, Desi Pipian. "The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016." JOURNAL OF APPLIED MANAGERIAL ACCOUNTING 3, no. 2 (2019): 273–87. http://dx.doi.org/10.30871/jama.v3i2.1552.
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This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis. The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.
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Chtourou, Sonda Marrakchi, Soumaya Ayedi, and Yosra Makni Fourati. "Determinants of board composition: Evidence from Tunisian companies." Corporate Ownership and Control 3, no. 2 (2006): 165–73. http://dx.doi.org/10.22495/cocv3i2c1p2.
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This study focuses on the composition of boards of directors in the Tunisian context. We model the composition of the board of directors as a function of alternative governance mechanisms, some board characteristics and other control variables. On a sample of 97 Tunisian firms, we find evidence that the proportion of outsiders on the board of directors is positively associated with large block, institutional and overseas ownerships, and board size. We document that the CEO duality is associated with a decrease in the board independence. We fail to find evidence that increased debt ratio to total assets is inversely associated with the outside board representation. While we predict a positive relationship between the board independence and the firm size, the organizational complexity and the quotation status; our results generally do not support this conjecture
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Kaur Virk, Gundeep. "The influence of board characteristics on corporate illegality." Journal of Financial Regulation and Compliance 25, no. 2 (2017): 133–48. http://dx.doi.org/10.1108/jfrc-05-2016-0045.
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Purpose In light of frequent corporate scams and frauds, this paper aims to investigate the relationship of corporate illegality with the board of directors’ characteristics in Indian manufacturing companies. Design/methodology/approach The board of director characteristics of sample companies charged with violation of the Securities Exchange Board of India (SEBI) regulations from 2008 to 2013 are matched to an equivalent-sized control data set. A cross-sectional logistic regression model is applied to test the hypothesized association. Findings The findings suggest that the SEBI violations are less likely to occur when a large fraction of the board of directors consists of independent directors and when the individual directors have multiple appointments on the boards of other companies. However, it is observed that the size of the board and its meetings have no observable association with violation of the SEBI regulations. Research limitations/implications This work is likely to aid future research in exploring the impact of governance mechanisms on the occurrence of illegality. In future, studies may be conducted to investigate the probability of illegal corporate events using a larger sample size and corporate governance variables which have not been examined in the present study. Practical implications The analysis provides corporate policy makers and investors an insight to evaluate the vulnerability of a company being engaged in illegality based on its board features. Originality/value The present study is distinct from previous reports as it makes a novel attempt to gauge the relationship between the board of directors’ characteristics and the occurrence of illegality in the Indian corporate section.
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Aliyu, Abubakar Biu, Onipe Adabenege Yahaya, and Nma Ahmed Mohammed. "Board features and financial performance of Nigerian banks." International Journal of Finance & Banking Studies (2147-4486) 10, no. 1 (2021): 11–19. http://dx.doi.org/10.20525/ijfbs.v10i1.1003.
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The presence of contradictory theories and unpredictable empirics calls for this paper to survey the outcome of board traits on financial operation of Nigeria banks. Financial performance of a firm is as important as the firm. Yet, very few studies have examined its impact by the board of directors in Nigeria. Data were obtained and perused using descriptive and inferential figures. Findings show that size of board has significant and constructive bearing on business piece. However, board composition takes undesirable significance. Meetings of board and gender failed to show significance. But, board member nationality and firm size show negative and significant effects. We added by exploring impacts of boards on financial performance. We asked firms to increase the size of the board and engage more independent directors and reduce the number of board diligence and size of the firm. The strong plus impact of board size and firm size on financial operations is an interesting result allowing for additional interrogation of why these behaviours.
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14, Rizki Audio, and Vanica Serly. "Pengaruh Karakteristik Dewan Direksi terhadap Kinerja Bank Syariah." JURNAL EKSPLORASI AKUNTANSI 4, no. 1 (2022): 232–47. http://dx.doi.org/10.24036/jea.v4i1.443.
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This study aims to examine the effect of the characteristics of the board of directors on the performance of Islamic banks. This study examines the characteristics of the board of directors in proxy Size of the board of directors, remuneration of the board of directors, frequency of board of directors meetings, age of the board of directors, educational background of the board of directors. This study uses a sample of Islamic banking registered with the OJK from 2015-2016. The results of this study found that the remuneration of the board of directors has a positive effect on the performance of Islamic banks, while the size of the board of directors, the frequency of board of directors meetings, the age of the board of directors, the educational background of the board of directors does not affect the performance of Islamic banks.
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Nugroho, Tri Cahyo, Warseno Warseno, and Isrial Isrial. "Pengaruh Struktur Dan Proses Corporate Governance Terhadap Kinerja Perusahaan Di Indonesia." IJAcc 1, no. 1 (2020): 39–52. http://dx.doi.org/10.33050/jakbi.v1i1.1379.
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The aims of the research is analyzing the influence of corporate governance structure and process on firm performance in Indonesia . The Indicators in this research is : institutional ownership, independent commissioner, board of directors size, board of directors meeting, board of commissioners meeting and audit committee meeting. Firm performance measured by TobinsQ value. This research uses multiplier regression analysis as statistic instrument. Population in this research is consumer goods manufacture listed on Bursa Efek Indonesia 2001-2015 obtain 85 samples base on determined criteria. The results of this research show that institutional ownership, independent commissioner and board of commissioners meeting has significant positive influence on firm performance, board of directors size and board of director meeting has significant negative influence on firm performance, while the audit committee meeting has no influence on firm performance
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Nugroho, Tri Cahyo, Warseno Warseno, and Isrial Isrial. "Pengaruh Struktur Dan Proses Corporate Governance Terhadap Kinerja Perusahaan Di Indonesia." IJAcc 1, no. 1 (2020): 39–52. http://dx.doi.org/10.33050/ijacc.v1no1p4.
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The aims of the research is analyzing the influence of corporate governance structure and process on firm performance in Indonesia . The Indicators in this research is : institutional ownership, independent commissioner, board of directors size, board of directors meeting, board of commissioners meeting and audit committee meeting. Firm performance measured by TobinsQ value. This research uses multiplier regression analysis as statistic instrument. Population in this research is consumer goods manufacture listed on Bursa Efek Indonesia 2001-2015 obtain 85 samples base on determined criteria. The results of this research show that institutional ownership, independent commissioner and board of commissioners meeting has significant positive influence on firm performance, board of directors size and board of director meeting has significant negative influence on firm performance, while the audit committee meeting has no influence on firm performance
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Hurst, Sam, and Ed Vos. "New Zealand CEO compensation factors." Corporate Ownership and Control 6, no. 4 (2009): 47–53. http://dx.doi.org/10.22495/cocv6i4p5.
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This paper analyses a combination of factors to try and determine whether they explain CEO compensation, and in turn help determine what makes the board of directors more effective. Factors include busy boards, local or international board members, dependent and not independent board members, director’s pay and tenure variables. Of the new and old factors considered in this approach and using a sample size of 31 NZ firms over the 2006/2007 years, a correlation existed between firm size/firm performance and CEO compensation. Further distinctions in regards to busy boards showed no significant relationship to CEO compensation, differing from previous studies, and casting doubt on whether it matters how busy the board is. Also the locality of the board was not a determining factor in CEO compensation.
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Endraswati, Hikmah, and Bayu Tri Cahya. "Board Characteristics, Type of Insurance and Performance In Indonesia Sharia Insurance Companies." IQTISHADIA 13, no. 2 (2020): 258. http://dx.doi.org/10.21043/iqtishadia.v13i2.8083.
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The purpose of this study was to examine the influence of the board characteristics on the performance of Indonesia sharia insurance companies with insurance types as moderating variable. The board characteristics in this study are the size of board directors, the size of board commissioners, the proportion of women in board directors, and the proportion of women in board commissioners. This study uses 22 sharia insurance business units as a sample with the periode of 2014-2019. We use purposive sampling as a sampling technique. Multiple regression with split sample is used in this research as technical analysis. The results showed that the size of the board directors influence performance negatively. In addition, the type of insurance moderate the influence size of board directors and the proportion of women as directors on performance. There are differences for size of the board of commissioners and the proportion of women as board commissioners.
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Bronzetti, Giovanni, Romilda Mazzotta, and Graziella Sicoli. "Governance, board diversity and firm value: The case of the Italian publicly listed firms." Corporate Ownership and Control 8, no. 1 (2010): 637–45. http://dx.doi.org/10.22495/cocv8i1c6p5.
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This paper investigates the relations firm on board diversity and firm value on a sample of Italian Publicly listed firm. Specifically, we look at the composition of boards (as defined board size, Majority of independent directors, leadership structure) and at his diversity (defined as the percentage of women and directors of other, average age of the board, other board’s member appointment). We provide evidence that board diversity positively affect performance.
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Benjamin, Iorsue Awen, Aliyu Lamido Ismaila, and Adabenege Yahaya Onipe. "Board size, independence and dividend policy in Nigeria." International Journal of Economics and Finance 15, no. 5 (2023): 72–91. https://doi.org/10.5281/zenodo.7884410.
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<strong><em>Abstract</em></strong> Using a sample of 1,120 firm year observations over the 2012-2021 period, we provide the first evidence on the impact of board of directors on dividend policy in Nigeria. Board of directors was measured by board size and board independence, while dividend policy was measured by dividend paid per share. Using Ordinary Least Squares (OLS) Method, we find that board size and board independence have significant effects on listed firms dividend policy. In Nigeria. Consistent with the agency theory and signaling hypotheses, we find that this result is more pronounced in firms with long years of experience of listing and huge size. This study points to a promising direction for future research to gain a deeper understanding of how the board of directors affects corporate policies and behaviour. However, the study is limited by the number of samples, specifically 112 listed firms. It is expected that further research can increase the total sample of companies and also by adding to the research period or using all companies. Our study results show that the R<sup>2 </sup>square value is 49.3 percent, meaning that there is room for improvement in the model of the study. Further research is expected to add other board of directors proxies that may influence the decisions made in a company such as board gender diversity, and board shares ownership.
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Rahman, Haseeb Ur, and Muhammad Zahid. "Women directors and corporate performance: firm size and board monitoring as the least focused factors." Gender in Management: An International Journal 36, no. 5 (2021): 605–21. http://dx.doi.org/10.1108/gm-12-2019-0252.
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Purpose This paper aims to examine the impact of women directors on corporate performance (CP) and the mediating role of board monitoring in their relationship. Design/methodology/approach The ordinary least squares with panel corrected standard errors are used as a primary estimator along with three other estimators to check the robustness of the estimations and address the potential endogeneity in a stratified random sample of 320 non-financial Malaysian companies listed on Bursa Malaysia (Stock Exchange) between 2010 and 2014. Findings It is found that women directors on the board not only improve firms’ return on assets but also reduce the volatility of their stocks. However, these findings are more applicable in small firms as compared to large firms. Besides, it is also noted the board monitoring significantly mediates the relationship between women directors and CP. Practical implications As the monitoring role of women directors improves CP, substantial efforts may be put in to increase their meritorious representation on the boards. The regulators could pay equal attention to the small firms. Additionally, the number of board meetings may also be increased for strengthening the monitoring abilities of the board to improve CP. Originality/value The study contributes to the existing literature, as little attention has been paid to the mediation of board monitoring in the nexus of women directors and CP in the past.
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Aprilia, Audrey Winona, Renita Febriany, Luciana Haryono, and Nany Chandra Marsetio. "Pengaruh Karakteristik Direksi Terhadap Kinerja Perusahaan yang Terdaftar di Bursa Efek Indonesia." Jurnal Akuntansi 12, no. 2 (2020): 233–55. http://dx.doi.org/10.28932/jam.v12i2.2800.
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Directors are human resources who play an important role in maintaining the long-term sustainability of the company's business. Thus, this study aims to determine board size, CEO tenure, and foreign director on company performance in the non-financial industry on the Indonesia Stock Exchange in 2013-2018 with multiple linear regression analysis using 1,764 sample data from 294 companies. Contributions in this study using resource dependency theory, stewardship theory and foreign directors variables as indicators of independence. The results of the study board size have a significant positive effect on company performance, with an optimal number of 4-9 people because it can provide diverse perspectives and ideas in decision making. CEO tenure does not affect ROA and ROE because the president director tends to reject and avoid risks and company's performance is influenced by all directors, not just the president director. Foreign directors have a significant positive effect on ROA with an optimal percentage of 26-50% because they provide different perspectives on decision making, but does not affect ROE with 51-75% of the optimal amount because does not have large influence to influence decisions in improving company performance.
 Keywords: Director’s Characteristics, Firm Performance, Resource Dependency Theory, Stewardship Theory.
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ABEBE, MICHAEL, and PHYU PHYU AUNG MYINT. "BOARD CHARACTERISTICS AND THE LIKELIHOOD OF BUSINESS MODEL INNOVATION ADOPTION: EVIDENCE FROM THE SMART HOME INDUSTRY." International Journal of Innovation Management 22, no. 01 (2018): 1850006. http://dx.doi.org/10.1142/s1363919618500068.
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What role does the board of directors play in fostering organisational innovation? This study contributes to this conversation by exploring the relationship between board characteristics and business model innovation adoption. Drawing from resource dependence theory and using the smart home business model as our context, we examined the relationship among board size, CEO duality and proportion of outside directors on the likelihood of business model innovation adoption. Our analysis of 96 firms indicates that both board size and CEO duality significantly increase the likelihood of business model innovation adoption. Our findings highlight the important resource provision role boards play in promoting organisational innovation.