scholarly journals The Impact of Board Characteristics on the Financial Performance of Tanzanian Firms.

2016 ◽  
Author(s):  
◽  
Modest Assenga
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Annual Reports ◽  
Outside Directors ◽  
Board Characteristics ◽  
Dependence Theory ◽  
Foreign Directors ◽  
The Impact

This study investigates the impact of board characteristics on the financial performance of listed Tanzanian firms. The study uses two theories of corporate governance to test the hypothesised relationships between board characteristics and financial performance. These are: namely, agency theory; and resource dependence theory and are complemented through the use of a stewardship theory. The study seeks to investigate the impact of the following variables on financial performance i) independent outside directors; ii) board size; iii) CEO duality; and iv) the board diversity aspects of gender, foreign directors and board skill. The study uses a mixed methods approach and applies a convergent parallel design (Creswell & Plano Clark, 2011), collecting quantitative data from annual reports and qualitative data from semi-structured interviews with 12 key stakeholders in corporate governance. Quantitatively, the study examines the balanced panel data of 80 firm-years observations (2006-2013) from the annual reports of 10 Tanzanian listed firms. The findings partially support agency theory since CEO duality was related with a reduction in financial performance. However, the findings do not support a relationship between the proportion of outside directors on boards and financial performance. The study provides some support for aspects of resource dependence theory, since the findings suggest that there is a positive link between gender diversity and financial performance. However, board size, board skill and foreign directors were not found to have a significant impact on financial performance. Furthermore, the interview findings provide some explanations of the relationships between board characteristics and financial performance by suggesting that the impact depends largely on the independence and proficiency of the individual directors on a firm’s board. The study contributes to the understanding of relationships between board characteristics and financial performance. The study uses, for the first time in this kind of research, Tanzanian data and the underutilised approach of mixed methods to corporate governance research. The study provides academic evidence for Tanzanian policy makers in relation to current and future governance reforms.

scholarly journals The impact of board characteristics on the financial performance of Tanzanian firms

2018 ◽  
Vol 18 (6) ◽  
pp. 1089-1106 ◽  
Author(s):  
Modest Paul Assenga ◽  
Doaa Aly ◽  
Khaled Hussainey
Keyword(s):  
Financial Performance ◽  
Resource Dependence ◽  
Gender Diversity ◽  
Resource Dependence Theory ◽  
Outside Directors ◽  
Content Type ◽  
Board Characteristics ◽  
Dependence Theory ◽  
Foreign Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories, namely, agency theory and resource dependence theory. Design/methodology/approach The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports, and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell and Plano Clark, 2011) to integrate quantitative and qualitative data. Findings It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles, they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification and foreign directors. Practical implications The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

scholarly journals Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance

2019 ◽  
Vol 11 (2) ◽  
pp. 449 ◽  
Author(s):  
Nina Shin ◽  
Sun Park ◽  
Sangwook Park
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Equation Modeling ◽  
Supply Network ◽  
Supply Chain Collaboration ◽  
The Impact ◽  
The Relationship

With increasing numbers of nodes and links in supply network relationships, understanding partnership management and the required level of collaboration is important for sustainable supply network alignment. This study explores the impact of partnership orientation on partnership commitment and firm performance using a model based on social capital theory and resource dependence theory. It aims to understand the appropriate partnership orientation for the desired level of commitment and firm performance, including innovation, operational, and financial performance. Using a survey of 423 respondents representing three different partnership structure types (supplier, buyer, and parallel-aligned firms’ perspectives), the relationship between partnership orientation and commitment in enhancing firm performance is investigated using structural equation modeling. Additional analysis identifies the moderating role of commitment and investment exchange on performance. The findings show that positive relationships between both investment and contractual-based partnership orientation positively contribute to partnership commitment, but the direct association between partnership commitment and firm performance type varies by partnership structure. Furthermore, (i) investment exchange level moderates the relationship between commitment and innovation and operational performance regardless of partnership structure type, (ii) negative investment exchange signals higher firm performance from the buyer firm’s perspective, and (iii) positive investment exchange is absolutely necessary for financial performance from the supplier firm’s perspective.

The Effect of Board Characteristics on Firm Environmental Performance

2011 ◽  
Vol 37 (6) ◽  
pp. 1636-1663 ◽  
Author(s):  
Charl de Villiers ◽  
Vic Naiker ◽  
Chris J. van Staden
Keyword(s):  
Environmental Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Sensitivity Analyses ◽  
Board Independence ◽  
Board Characteristics ◽  
Dependence Theory ◽  
The Board Of Directors ◽  
Board Roles ◽  
The Relationship

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.

The Impact of Technological, Governance, and Political Capabilities on Firms' Performances Under Economic Turbulence

2019 ◽  
pp. 337-354
Author(s):  
Beste Altınçubuk
Keyword(s):  
Competitive Advantage ◽  
Transaction Cost ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Transaction Cost Theory ◽  
Dependence Theory ◽  
Political Capabilities ◽  
The Impact ◽  
Recessionary Periods ◽  
Resource Based Theory

Although there have been various studies exploring the effects of capabilities on firms' performances, it is not clear whether particular capabilities would create more competitive advantage for firms under recessionary periods compared to expansionary periods. The main focus in this chapter is to examine the impacts of technological, governance, and political capabilities on firms' performances under recessionary and expansionary periods. The aim of this chapter is to explore these effects by drawing upon resource-based theory, transaction cost theory, and resource dependence theory.

scholarly journals Corporate governance and voluntary risk and forward-looking disclosures

2018 ◽  
Vol 19 (4) ◽  
pp. 592-607 ◽  
Author(s):  
Mohammed M. Elgammal ◽  
Khaled Hussainey ◽  
Fatma Ahmed
Keyword(s):  
Corporate Governance ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Annual Reports ◽  
Board Size ◽  
Content Type ◽  
Board Characteristics ◽  
Panel Regressions ◽  
The Impact ◽  
Forward Looking

PurposeThe purpose of this paper is to examine the impact of corporate governance on risk and forward-looking disclosures in Qatar.Design/methodology/approachThe authors automatically measure levels of risk and forward-looking disclosures in the annual reports of Qatari firms for the period 2008–2014. The authors also use two ways clustered error pooled panel regressions to examine the determinants of these disclosures.FindingsThe authors find that firms with a higher percentage of foreign ownership disclose more forward-looking information; conversely, board size has a negative impact on the forward-looking disclosure. Financial firms tend to disclose less forward-looking information, however, they tend to disclose more forward-looking information after the 2008 global financial crisis. The authors also find negative relationships between the risk disclosure and both the number of non-executive members of the board of directors and duality role of the CEO.Research limitations/implicationsThe study uses the quantity of disclosure as a proxy for the quality of disclosure.Practical implicationsThe findings should help the users of corporate annual reports in Qatar to understand managerial incentives for reporting risk and forward-looking information. This should help regulators to set a proper set of disclosure rules. Moreover, this study increases our understanding of the behavior of international investors and the board characteristics (i.e. board size) in motivating risk and forward-looking disclosures in Qatari firms.Originality/valueThe authors provide the original empirical evidence on the impact of corporate ownership and board characteristics on risk and forward-looking disclosures for Qatari firms using two ways clustered error pooled panel regressions.

scholarly journals Corporate Philanthropy and Innovation Performance

2018 ◽  
Vol 13 (4) ◽  
pp. 173
Author(s):  
Shaoyan Jiang ◽  
Jingwen Mi ◽  
Xiaohui Tao ◽  
Wanwan Hu
Keyword(s):  
Information Disclosure ◽  
Theoretical Basis ◽  
Quantitative Data ◽  
Resource Dependence ◽  
Corporate Philanthropy ◽  
Resource Dependence Theory ◽  
Innovation Performance ◽  
Quantitative Data Analysis ◽  
Dependence Theory ◽  
The Impact

Corporate Philanthropy and innovation performance are the focuses of enterprise research in recent years. Based on resource dependence theory and information disclosure theory, the paper explores the impact of philanthropic donations on innovation performance. Through the quantitative data analysis of 319 enterprises in China, the results show that: (1) There is an obviously positive correlation between philanthropic donations and innovation performance, which will be affected by the scale of enterprises. (2) The disclosure of philanthropic information will weaken the promotion effect of philanthropic donation on innovation performance. The conclusion of the study made a useful extension of the existing philanthropic donation literature and provided a theoretical basis for the philanthropic practice of the enterprise.

scholarly journals THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LEBANESE BANKS

2021 ◽  
pp. 70-85
Author(s):  
Bilal Jibai
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Direct Relationship ◽  
Annual Reports ◽  
Quantitative Methodology ◽  
Substantial Evidence ◽  
New Knowledge ◽  
Governance Practices ◽  
The Impact ◽  
Governance Disclosure

The aim of this research is to study the impact of corporate governance disclosure on the financial performance of Lebanese banks. The impacts of corporate governance consequences on financial performance are the problem being faced by many firms. This research applies a quantitative methodology to the data from 29 banks’ annual reports for the year 2018. This data was analyzed using regression analysis means. This empirical study intends to find substantial evidence which would help acquire new knowledge and better understanding of how virtuous corporate governance practices and disclosures may help improve banks’ performance. In particular, validation of our research hypotheses may help with assessing the importance of corporate governance disclosure for the financial performance of Lebanese banks. The research proves there is a direct relationship between diversity on board and financial performance, as well as, between frequency of Board meetings and financial performance.  

scholarly journals Moral Resources, Political Capital and the Development of Environmental Protection Organizations in China: A Case Study of City J

2015 ◽  
Vol 6 (3) ◽  
pp. 395-423
Author(s):  
Ying Xu ◽  
Evaon C. Wong-Kim
Keyword(s):  
Environmental Protection ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Political Capital ◽  
Chinese Government ◽  
Dependence Theory ◽  
The Government ◽  
The Impact ◽  
To Receive

AbstractThis article combines the moral resources and political capital perspective with the theoretical arguments of guanxi and resource dependence theory to explore the strengths and weaknesses of both the Chinese government-organized and the grassroots environmental protection organizations (ENPOs). Qualitative methods were applied in this study, and the impact of these two entities on environmental protection was also analyzed. The findings mainly include: First, the ascribed political capital can ensure good guanxi with governmental departments, and thus improve an NPO’s opportunities to receive resources. Second, although the ascribed political capital enables government-organized ENPOs to run smoothly, their transparency and management need to be improved. Third, though grassroots ENPOs have little of political capital, they possess advantages in terms of the self-chosen moral resource, which can help them become relatively independent from the government and assume responsibility for monitoring the environment. The article concludes with a discussion of implications for policy highlighted by the findings.

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