Corporate Governance Mechanisms and Firm Efficiency

Nanka-Bruce, Douglas

doi:10.5539/ijbm.v6n5p28

Cited by 23 publications

(25 citation statements)

References 47 publications

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“…While other groups emphasize the smaller size of the board, they have established that the smaller size of the board is more effective in decision-making, so it increases efficiency and leads firms to a higher level [55][56][57]. Many studies have taken the size of the board as exogenous and have established a positive influence on the return on assets, share prices and overall performance of the firms using OLS regression, fixed and random effect model, and DAE analysis for efficiency [58][59]. A recent study on the size of the board using the panel regression model found that the size of the board increases the financial performance of listed companies in emerging South Asian markets [60].…”

Section: Size Of the Board Of Directorsmentioning

confidence: 99%

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers

Wang

Ramzan

2020

PLoS ONE

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A superlative combination of the Board of Directors (BOD) with diverse members is considered a sign of a good governance structure. Meanwhile, the key decision taken by BOD to make organizations profitable is the capital structure with the optimal mix of debt and equity. Unfortunately, previous literature has reported this relationship with a mixed trend, which may be due to research gaps in the statistical analysis. Moreover, it also shows that the relationship between them has not yet been fully predicted and can still be completely understood. This study contains time-variant and time-invariant variables, and these variables usually have an outlier's problem. As we know that the OLS estimators are more sensitive to react adversely to this problem, yet we have not received enough evidence from similar researches that cares about it. Consistent with these arguments, this study focuses primarily on exploring the influence of corporate governance structure and the capital structure on firms' market-oriented and accounting-based performance, especially with the contemplation of outliers. Hypotheses have been evaluated using M-estimators and S-estimators of robust regression for 45 listed firms for the period from 2013 to 2017. The findings reveal that the governance structure of firms with BOD, independent director, institutional investors, audit committee and female directors accelerates its performance. Further, we find that the leverage ratio improves accounting performance, but it has a downward impact on the share prices of listed firms. Our study contributes to the prevailing literature by proving that the kind of governance structure that based on diverse expert members and a capital structure with a high volume of debt is of utmost importance to the performance of firms as a whole.

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Section: Size Of the Board Of Directorsmentioning

confidence: 99%

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers

Wang

Ramzan

2020

PLoS ONE

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“…Prior studies concentrated on two factors of board characteristics namely size of the board and board independence. The present research adds board meeting to these characteristics (Al Manaseer et al, 2012;Kang & Kim, 2011;Li et al, 2012;Nanka-Bruce, 2011;Obiyo & Lenee, 2011).…”

Section: Board Meeting and Firm Performancementioning

confidence: 99%

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Al-Matar¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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This study is an attempt to achieve the main objective by examining the association between the board of director's characteristics, audit committee characteristics and the executive committee characteristics and the performance of the Oman companies. This study used many assumptions to test the relationship between independent variables and dependent variable as discussed in the section explaining the study method. The data comprised of 162 non-financial companies because financial and non-financial companies employ different methods and they have different structures. As this study attempts to bridge the gap in the existing literature by investigating the association between corporate governance mechanisms and firm performance in the emerging market of Oman, it focuses on adding new important variables of corporate governance mechanisms like board change, the role of secretary on the board, the legal counsel and the executive committee characteristics that improve firm performance.The findings indicated a significantly positive relationship between board size, board meeting, audit committee independence and executive committee independence, and the Tobin`s Q. On the other hand, board independence and legal counsel are significantly and negatively related to Tobin`s Q. Moreover, a positive but insignificant relationship is found between CEO tenure, CEO compensation, audit committee size, and the firm performance (Tobin`s Q). Furthermore, board change, the role of the secretary on the board, audit committee meeting, executive committee size and executive committee meeting are revealed to have a negative but insignificant association with firm performance (Tobin`s Q). Finally, this study provides recommendations for future research.

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“…The attention of academic literature has been on various board attributes influence on firm performance ( Saibaba and Ansari, 2011 ; Dalton and Dalton, 2011 ; Nanka-Bruce, 2011 ; Rebeiz, 2015 ; Uwuigbe et al., 2018 ). These board attributes examined by previous researchers were board size, board independence, board diversity, board composition etc.…”

Section: Introductionmentioning

confidence: 99%

Board meeting frequency and firm performance: examining the nexus in Nigerian deposit money banks

Eluyela

Akintimehin

Okere

et al. 2018

Heliyon

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The main aim of this study is to examine the impact of board meeting frequency on firm performance of deposit money banks in Nigeria. Data used for the study were spawned from annual reports of the deposit money banks listed on Nigeria stock exchange (NSE) market. We employed a panel regression to test the significant association amid variables. Our main empirical result shows a positive association amid board meeting frequency and firm performance. Although, our findings also show that board size was positive and not significant and firm size was negative and significant. The study recommended that management of banks should consider increasing their frequency of board meetings to at least four (4) meetings per year. This will allow the sampled deposit money banks to comply with the good governance code in Nigeria which states that companies must meet at least once per quarter.

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Corporate Governance Mechanisms and Firm Efficiency

Cited by 23 publications

References 47 publications

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Board meeting frequency and firm performance: examining the nexus in Nigerian deposit money banks

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