(searched for: doi:10.1007/978-981-10-6926-0_4)
Accounting Research Journal; doi:10.1108/arj-03-2020-0054
Purpose This study aims to reconcile the contradictory findings of multiple directorships (MD) and its impact on firm performance. The present work incorporates the industry experience of busy directors into the picture and examines its impact on firm performance. Design/methodology/approach Data are collected for 345 non-financial National Stock Exchange listed firms from Bloomberg, Centre for Monitoring Indian Economy ProwessIQ database and company annual reports from the financial year 2008–2009 to 2017–2018. The industry and year fixed effect panel regression models are used for both business group and non-business group (NBG) firms. Findings The study reconciled the contradictory findings between MD and the performance of a firm. The results claim that firms having non-executive directors on board with similar industry experience positively influence the firm performance while board having non-executive directors with diverse industry experience establish an adverse relationship. The results are similar for both group affiliated and non-group affiliated firms in India. Further analysis through interaction effect reveals that the presence of more busy outside directors on board irrespective of their industry experience, i.e. similar or diverse, reduces the performance of a NBG affiliated firm. Research limitations/implications The findings of the study contribute to the existing literature and tries to establish a strong argument for MD by incorporating industry experience. The present work considers non-financial listed firms, while financial firms and industry experience of outside directors in other emerging economies can be studied to draw additional insights into the existing literature. Practical implications Both regulatory bodies and firms should consider the industry experience of non-executive directors for enhancing firm performance. Originality/value Existing studies highlight the contradictory arguments for MD and firm performance. The current study incorporates the industry experience of non-executive directors, either in a similar or diverse industry, for the empirical analysis to reconcile the contradictory findings. The present work suggests that a firm should appoint non-executive directors with similar industry experience to enhance firm performance.
SSRN Electronic Journal; doi:10.2139/ssrn.3765798
Purpose – The purpose of this study is to empirically examine the effect of board multiple directorships andchief executive officer (CEO) characteristics on firm performance among nonfinancial firms listed on thePalestine Security Exchange (PSE) during the period from 2009 to 2016.Design/methodology/approach – Based on 200 observations, this study utilizes panel data to examine theeffect of the predictors on firm performance measured by return on assets. The analysis is repeated using thereturn on equity and two regression methods to evaluate the robustness of the main analysis (pooledregression, and backward stepwise regression analysis).Findings – The results show that the “busyness” of a CEO reduces their effectiveness and is associated withlosses in the companies where they are in charge. On the other hand, the results show that CEO tenure, CEOexperience and CEO political connections have a positive effect on corporate performance.Originality/value – This study is timely given that the practice of multiple directorships is widely commonamong firms in developing countries. Prior research in Palestine has not investigated the role of multipledirectorships and the CEO characteristics on corporate outcomes. This study provides a picture of the potentialbenefits to firms, policymakers and professional bodies from considering CEO variables. The findings of suchan examination can help them to set up suitable policies and enhance the role and the quality of the CEOin firms.
Journal of Public Affairs; doi:10.1002/pa.2515
The main aim of the current study is to examine the relationship of ownership and board characteristics with firm performance of Pakistan non‐financial firms. This study employed panel data and collected from the annual reports of Pakistan for the period of 2010–2017 and used the regression model. The findings of this study state that the managerial ownership and foreign ownership have a significant positive impact on firm performance measured by market share. Duality has a significant negative and board independent is negative but not significant impact. Board size also has a significant positive relationship with firm performance. The good corporate governance is important which reduce the agency conflicts and enhance the stakeholder's interest. This study explores the link of ownership and board characteristics with firm performance examined by market share. The findings of this study will be helpful to the stakeholders, policymakers, government and practitioners.
Journal of Accounting in Emerging Economies, Volume 10, pp 637-654; doi:10.1108/jaee-12-2019-0231
PurposeThe purpose of this study is to empirically examine the effect of board multiple directorships and chief executive officer (CEO) characteristics on firm performance among nonfinancial firms listed on the Palestine Security Exchange (PSE) during the period from 2009 to 2016.Design/methodology/approachBased on 200 observations, this study utilizes panel data to examine the effect of the predictors on firm performance measured by return on assets. The analysis is repeated using the return on equity and two regression methods to evaluate the robustness of the main analysis (pooled regression, and backward stepwise regression analysis).FindingsThe results show that the “busyness” of a CEO reduces their effectiveness and is associated with losses in the companies where they are in charge. On the other hand, the results show that CEO tenure, CEO experience and CEO political connections have a positive effect on corporate performance.Originality/valueThis study is timely given that the practice of multiple directorships is widely common among firms in developing countries. Prior research in Palestine has not investigated the role of multiple directorships and the CEO characteristics on corporate outcomes. This study provides a picture of the potential benefits to firms, policymakers and professional bodies from considering CEO variables. The findings of such an examination can help them to set up suitable policies and enhance the role and the quality of the CEO in firms.
Published: 1 January 2020
by IGI Global
Handbook of Research on Climate Change and the Sustainable Financial Sector pp 208-226; doi:10.4018/978-1-7998-2136-6.ch010
This study examines the corporate governance mechanisms and how they affect firm performance in Malaysia. After the financial crisis in 1997/98, the CG issues have been the most debated, discussed, and researched in the attempt to improve the CG structure accommodating every economy regardless of the economic landscapes. Using a rich and huge data on Malaysian firms for 16 observation years, this study found that the MCCG has been of a closely referred blueprint by firms in Malaysia to improve firms' performance. Certain CG mechanisms do have significant impact on firm performance. Firms seem to operate in a large board size indicating a positive relationship with performance and board independence. CEO duality is negatively related, in support of separation of roles, complementing the result of board independence and ownership structure as positively related to performance. Agency theory seems to be the dominant theory influencing the CG structure of firms in Malaysia.