THE RELATIONSHIP BETWEEN BOARD STRUCTURE AND FIRM PERFORMANCE IN THE UK

1998 ◽  
Vol 30 (4) ◽  
pp. 383-407 ◽  
Author(s):  
NIKOS VAFEAS ◽  
ELENA THEODOROU
Keyword(s):  
Firm Performance ◽  
Board Structure ◽  
The Uk ◽  
The Relationship

scholarly journals Can board mechanism affect the firm value in Pakistan?

2009 ◽  
Vol 6 (3) ◽  
pp. 308-317 ◽  
Author(s):  
Mian Sajid Nazir ◽  
Shafaqat Ali ◽  
Abdul Haque
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Board Structure ◽  
Board Size ◽  
Positive Role ◽  
Performance Variables ◽  
Performance Factors ◽  
Governance Indicators ◽  
The Relationship

Corporate governance is, undoubtedly, extremely essential for the performance of the organizations. The structure of corporate ownership has significant impact on the external as well as internal performance factors of firms. The relationship between corporate governance indicators and firm performance has been extensively investigated; however, a little work has been done on how the structure of board can add value to the firm. This paper sheds light on the relationship of some aspects of board structure like board size, board composition, and CEO duality with the performance variables Tobin’s Q and Return on Assets (ROA) by using a sample of 53 firms of cement and sugar sectors of Pakistan for a period of 2005-2007. The results indicate that the firms perform better with moderate board size and the performance is adversely affected if CEO also acts as chairperson of board of directors whereas the external directors can play a positive role for firm performance in Pakistan.

Relationship between Corporate Governance Index and Firm Performance: Indian Evidence

2018 ◽  
Vol 19 (3) ◽  
pp. 675-689 ◽  
Author(s):  
Akshita Arora ◽  
Shernaz Bodhanwala
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Metrics ◽  
Market Competition ◽  
Board Structure ◽  
Data Set ◽  
Listed Firms ◽  
Market For Corporate Control ◽  
Governance Index ◽  
The Relationship

The Indian corporate governance norms have been evolving over a period of time but limited number of studies have been undertaken with reference to corporate governance index (CGI) in the Indian context. The study aims to examine the relationship between CGI and firm performance. We construct CGI using important parameters of governance such as board structure, ownership structure, market for corporate control and market competition. Our panel data set comprises of listed firms and the estimation analysis has been carried out using random effects method. The study reveals significant positive relationship between CGI and firm performance metrics. CGI is an important and causal factor in explaining firm performance. The investors would also have positive perception about business firms maintaining high governance standards, thus reducing possible funding costs.

scholarly journals Dynamic capabilities for firm performance under the information technology governance framework

2020 ◽  
Vol 32 (2) ◽  
pp. 129-157 ◽  
Author(s):  
Sabine Khalil ◽  
Maksim Belitski
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
It Governance ◽  
Content Type ◽  
Governance Framework ◽  
Technology Governance ◽  
The Uk ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to investigate the role of dynamic capabilities in the Information Technology (IT) Governance view framework and explores the relationship between three domains of IT governance (Strategy, Management and Operations) and firm performance. Design/methodology/approach In this study, the authors used a mixed methods approach and using a survey instrument and its validation with interviews, to collect data from 134 successful European SMEs in the multi-country setting of Belgium, Bulgaria, Denmark, Spain and the UK. Findings The findings show that various IT governance mechanisms function as dynamic capabilities and are directly associated with firm performance. The impact of each mechanism is different. Originality/value This study highlights the relationship between IT governance acumens and organisational performance. It contributes to the field of IT Governance Framework in management, and the results may be generalisable to wider economies and different organisation types.

scholarly journals Impact of board structure on firm performance: evidence from an emerging economy

2017 ◽  
Vol 11 (2) ◽  
pp. 210-228 ◽  
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al Mamun ◽  
Marcus Rodrigs
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Listed Companies ◽  
Board Structure ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

Purpose The aim of this paper is to examine the association between board demographics and firm financial performance of Karachi Stock Exchange companies and describe the attributes of these firms and their boards. The connection between board structure and firm performance has attracted much attention, especially in emerging economies, yet yielded many inconsistent empirical results. Design/methodology/approach This study examines the relationship between board structure and the performance of Pakistani public listed companies by using a sample of Karachi Stock Exchange 100 (KSE-100) indexed companies. This study exploits the corporate performance by accounting-based measures (return on assets), market-based measures (Tobin’s Q), and economic profit (economic value added). Findings The outcome of the study shows the positive relationship between the board size, minority representation in board, and family director’s in-board and firm performance. The authors also find that, instead of adding value, independent directors in Pakistan are negatively associated with firm value. Research limitations/implications The study is based on KSE-100 indexed companies from 2009 to 2013; however, a large sample and multiple years’ data are required. Practical implications The paper provides empirical evidence that board independence is not necessary for public-listed companies in Pakistan and would be of interest to regulatory bodies, business practitioners, and academic researchers. Originality/value The paper contributes to the literature on corporate governance and firm performance by introducing a framework for identifying and analyzing moderating variables that affect the relationship between board structure and firm performance.

Empirical investigation of relationship between research and development intensity and firm performance: The role of ownership structure and board structure

2019 ◽  
Vol 06 (02) ◽  
pp. 1950016
Author(s):  
Muhammad Usman Yousaf ◽  
Muhammad Kashif Khurshid ◽  
Aftab Ahmed ◽  
Muhammad Zulfiqar
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Outcome Variable ◽  
Board Structure ◽  
Governance Mechanism ◽  
Financial Firms ◽  
The Relationship

Research and development is an emerging competitive advantage to gain maximum market share. This study is conducted to empirically investigate the relationship between research and development intensity and firm performance in selected non-financial firms listed at Pakistan Stock Exchange (PSX). Moreover, the role of ownership structure and board structure have been evaluated between predictor and outcome variable. For this purpose, 27 non-financial firms listed on PSX have been selected for the period of eight years from 2009 to 2016 and unbalanced panel data was obtained. Research and development intensity has been used as an independent variable. ROA, ROE, and TQ are used as measures of financial performance, i.e., dependent variable. Ownership concentration, institutional ownership, and managerial ownership are used as the proxies for ownership structure. Board size, board independence, and board meeting frequency are used as the proxies for board structure. Moreover, firm size, firm age and leverage have also been used as a control variables in data analysis. Based on data analyses, it is concluded that research and development intensity has a positive and significant relationship with all three proxies of firm performance, i.e., ROA, ROE and Tobin’s Q. Afterward, the researchers have investigated the moderating role of ownership structure and board structure between research and development intensity and three proxies of firm performance. It is also concluded that in general ownership structure as well as board structure are negatively moderating the relationship between research and development intensity and firm performance which raises a question mark on the effectiveness of corporate governance mechanism in terms of R&D performance.

Effect of ownership structure and board structure on firm value: evidence from India

2017 ◽  
Vol 17 (4) ◽  
pp. 700-726 ◽  
Author(s):  
Rakesh Mishra ◽  
Sheeba Kapil
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Measures ◽  
Board Structure ◽  
Tobin’S Q ◽  
Reverse Causality ◽  
Tobin's Q ◽  
Data Set ◽  
Content Type ◽  
The Relationship

Purpose This paper aims to explore the relationship of promoter ownership and board structure with firm performance for Indian companies. Design/methodology/approach Corporate governance structures of 391 Indian companies out of CRISIL NSE Index (CNX) 500 companies listed on national stock exchange (NSE) have been studied for their impact on performance of companies. Panel data regression methodology has been used on data for five financial years from 2010 to 2014 for the selected companies. Performance measures considered are market-based measure (Tobin’s Q) and accounting-based measure (return on assets [ROA]). Findings The empirical findings indicate that market-based measure (Tobin’s Q) is more impacted by corporate governance than accounting-based measure. There is significant positive association between promoter ownership and firm performance. It is also indicated that the relationship between promoter ownership and firm performance is different at different levels of promoter ownership. Board size is found to be positively related to ROA; however, board independence is not found to be related to any of the performance measures. Research limitations/implications Limitations of the study are in terms of data methodology and possible omission of some variables. It is felt that endogeneity and reverse causality might be better addressed using simultaneous equation methodology. Originality/value The paper adds to the emerging body of literature on corporate governance performance relationship in Indian context using a reasonably wider and newer data set.

scholarly journals GENDER DIVERSITY ON BOARD AND ITS RELEVANCE TO FIRM PERFORMANCE: A STUDY ON PHARMACEUTICAL INDUSTRY OF BANGLADESH

2022 ◽  
pp. 1-15
Keyword(s):  
Firm Performance ◽  
Pharmaceutical Industry ◽  
Gender Diversity ◽  
Stock Exchanges ◽  
Board Structure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Size Firm ◽  
The Relationship

The study tries to examine the relationship between gender diversity on the Board and firms' profitability in Bangladesh's Pharmaceutical industry. The study employs a panel data approach with all the Pharmaceutical companies listed under Dhaka Stock Exchanges. The sample period covers eight years from 2012-2019. To conduct the study, Return on Equity and Tobin's Q was taken as a proxy of accounting measure of profitability and market measure of profitability, respectively. The proportion of women on board structure was taken as a proxy for gender diversity. Some other variables: board size, firm age, leverage, and firm size, were incorporated to control the effect of these variables on profitability. The study reveals that gender diversity shows a positive but insignificant relationship with the firm's performance in terms of ROE. The R square of this model was 11.67%. In terms of Tobin's Q, gender diversity exhibited a significant positive relationship with firm performance. The R square of this model was 17%. This implies that the market ascribes a great value to the inclusion of women in board structure since it increases the board structure's independence and profitability.

scholarly journals Does Board Composition Matter? The Relationship Between Board Characteristics and Financial Performance: Evidence From Chinese Listed Agricultural Companies

2021 ◽  
Vol 12 (1) ◽  
pp. 177
Author(s):  
Oleh Pasko ◽  
Fuli Chen ◽  
Jianping Wang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Analysis ◽  
Board Composition ◽  
Board Independence ◽  
Board Structure ◽  
Specific Context ◽  
Institutional Settings ◽  
The Relationship ◽  
Made In

The paper aims to make new insight to some of the contradicting findings in prior studies of the board structure–firm performance relationship and to assess this connection in the specific context of Chinese listed agricultural companies practice. The study investigates the data of Chinese agricultural listed companies from 2008 to 2017, using multiple regression authors examine the relationship between board characteristic and financial performance. Conducted by authors empirical analysis shows that CEO duality and board size are significantly positively correlated with financial performance (proxies - ROA, ROE, and EPS). Although, contrary to the findings made in Western institutional settings the paper’s results testify that board independence has no significant impact on financial performance in China. The study’s findings enrich the understanding of linkage “board structure–firm performance”, especially in China – institutional settings that have proved to differ in many ways from other jurisdictions. Additionally, the paper provides an in-depth synthesis of research into this linkage to the date.

scholarly journals The relationship between board size, board composition, CEO duality and firm performance: Experience from Ghana

2007 ◽  
Vol 4 (2) ◽  
pp. 114-122 ◽  
Author(s):  
Anthony Kyereboah-Coleman ◽  
Nicholas Biekpe
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Agency Cost ◽  
Board Composition ◽  
Board Structure ◽  
Board Size ◽  
Clear Separation ◽  
Listed Firms ◽  
Data Framework ◽  
The Relationship

The paper examined board characteristics and its impact on the performance of non-financial listed firms in Ghana. Data covering 11 year period (1990-2001) was used and analysis conducted within the panel data framework. The study shows that most Ghanaian firms adopt the two-tier board structure and are largely non-independent. The regression results, though relatively mixed, confirm other studies and show that there should be a clear separation of the two critical positions of CEO and board chairman in order to reduce agency cost for enhanced firm performance.

Sign in / Sign up

Export Citation Format

Share Document