Board Members’ Education and Firm Performance: Evidence from a Developing Economy

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

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Board Capital Effect on Firm Performance: Evidence from Indonesia

International Journal of Business and Society ◽

10.33736/ijbs.3265.2020 ◽

2021 ◽

Vol 21 (1) ◽

pp. 491-506

Author(s):

Maria Kontesa ◽

Andreas Lako ◽

Wendy

Keyword(s):

Human Capital ◽

Firm Performance ◽

Financial Distress ◽

Board Members ◽

Firm Level ◽

Capital Theory ◽

Strategic Resources ◽

Board Capital ◽

And Performance ◽

High Level

Human capital effects have been ignored as important resources to induce the organization’s performance in firm-level research. The proponents of human capital theory and resource-based view theory argue that the human resources attached to each board member, such as networking, education, and experience, might induce the performance. Yet, agency theory argues those strategic resources might bring higher transaction costs and entrenchment costs. Therefore, this study aims to examine the board's capital effect on firm performance for a sample of 252 listed firms in Indonesia over 2011–2017. Using dynamic GMM panel regression, we confirm the hypothesis about board capital and performance. The results imply that board members’ networking and experience are two important factors for firm performance. However, boar members’ education does not give any impact. It confirms prior theories whereby the capability and competency of directors are an important source for the firm to achieve its objective. Networking and experience might help the firm to avoid financial distress. It furthers implies that shareholders should choose board members with a high level of networking and experience, not education.

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Do the Characteristics of Independent Directors and Supervisory Board Members Matter in China?

Business and Management Studies ◽

10.11114/bms.v2i3.1809 ◽

2016 ◽

Vol 2 (3) ◽

pp. 27 ◽

Cited By ~ 1

Author(s):

Hongmei Xu ◽

Jiang Lin

Keyword(s):

Decision Making ◽

Firm Performance ◽

Supervisory Board ◽

Clear Relationship ◽

Independent Directors ◽

Board Members ◽

Decision Making Process ◽

Listed Firms ◽

Empirical Results

This paper investigates and compares the characteristics of independent directors and supervisory board members in Chinese listed firms. The occupational backgrounds of independent directors and supervisory board members in listed firms are very different. Besides, different firms have different preferences in employing independent directors and supervisory board members according to their demands. Moreover, the empirical results show that characteristics of independent directors and supervisory board members have no clear relationship with firm performance. No matter their professional backgrounds or age, the independent directors and supervisory board members do not have the authority to affect the decision making process of management. Thus they cannot really contribute to firm performance.

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Faktor-Faktor Yang Mempengaruhi Kinerja Perusahaan

Jurnal Manajemen Bisnis dan Kewirausahaan ◽

10.24912/jmbk.v2i5.4877 ◽

2019 ◽

Vol 2 (5) ◽

Author(s):

Michael Hidayat

Keyword(s):

Firm Performance ◽

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Financial Statement ◽

Board Members ◽

Board Independence ◽

Managerial Ownership ◽

Board Size ◽

Size Firm

The Purpose Of This Research Is To Analyze Determinants Of Firm Performance In Non-Financial Companies Listed On Indonesia Stock Exchange. Determinants That Are Tested In This Research Include: Board Independence, Board Size, Firm Size, Firm Age, Liquidity, Leverage, Managerial Ownership, Female Board Members. The Object In This Research Is Non-Financial Companies Listed From 2011 Until 2014. The Population Of This Research Is 378 Non-Financial Companies. Sampling Techniques That Used In This Research Is Purposive Sampling. There Are 30 Non-Financial Companies Listed From 2011 To 2014 Which Met The Criterion Used As Sample. The Data Used Is Secondary Data That Collected From Financial Statement Of The Company. Analysis Method Of This Research Is Multiple Linier Regressions. The Result Of This Research Conclude That Board Independence, Leverage, And Female Board Members Have Influence Toward Firm Performance. Other Variable Such As Board Size, Managerial Ownership, Firm Size, Liquidity, And Age Firm Don’t Have Influence To Firm Performance.

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