Effect of Board Diversity and Corporate Governance Structure on Operating Performance: Evidence from the Nepalese Enterprises

Gupta, Ritu; Chand, Rupa; Sadaula, Sabeena; Saud, Sangita; Ambai, Sapana

doi:10.1007/978-3-319-94613-9_23

Cited by 2 publications

(9 citation statements)

References 30 publications

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“…Varied outcomes have been reported on the relationship between the frequency of board meetings and financial performance. Gupta et al (2019) found a positive relationship between the frequency of board meetings and ROE among Nepalese SOEs. Also, Al-Matari (2019) showed a positive and significant relationship between frequency of board meetings and Tobin's Q. Conversely, Arora and Sharma (2016) reported contradictory findings between the impact of board meetings and financial performance; whereas, the positive but insignificant relationship was reported with ROA, ROE and stock returns, negative but insignificant relationship was reported with net profit margin and a positive significant relationship was reported with Tobin's Q.…”

Section: Board Meetingsmentioning

confidence: 78%

“…Similarly, Adams and Ferreira (2009) documented that on average, female board representation is negatively associated with financial performance (Tobin's Q and ROA). Gupta et al (2019) also found a negative relationship between the presence of women on board and market price per share. Yet, Rakhman (2019) found no association between gender diversity and the level of capital budget realization among local governments in Indonesia.…”

Section: Gender Diversitymentioning

confidence: 83%

“…but contradictsGhazali (2010),Hassan et al (2017),Al-Matari (2019) andGupta et al (2019), who established positive but insignificant relationship between board size and financial performance. A possible explanation for this result is that, in Kenya, board appointments are typically anchored on political affiliation and favouritism especially among individuals who have lost in their election/re-election bid.…”

mentioning

confidence: 80%

“…Likewise, Khongmalai and Distanont (2017) examined the relationship between corporate governance practices and the performance of state-owned enterprises (SOEs) in Thailand and observed a negative relationship between the board of directors and performance. Besides, Gupta et al (2019), revealed inconsistent results on the role of gender diversity and corporate governance structures on operating performance among Nepalese enterprises. The variation in results may be due to several reasons.…”

Section: Introductionmentioning

confidence: 99%

“…There has been a copious of studies on the relationship between corporate governance and performance (Afrifa and Tauringana, 2015; Khongmalai and Distanont, 2017; Assenga et al , 2018; Gupta et al , 2019). This manifest increased attention is given to corporate governance and its impact on performance.…”

Section: Introductionmentioning

confidence: 99%

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Corporate governance and financial performance of state-owned enterprises in Kenya

Abang'a

Tauringana

Wang’ombe³

et al. 2021

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Purpose This paper aims to report the results of an investigation into the effect of aggregate and individual corporate governance factors on the financial performance of state-owned enterprises (SOEs) in Kenya. Design/methodology/approach The paper uses balanced panel data regression analysis on a sample of 45 SOEs in Kenya for a four-year period (2015–2018). Findings The panel data analysis results show that board meetings, board skill and gender diversity individual provisions of corporate governance are significantly and positively associated with capital budget realization ratio (CBRR). Moreover, the study finds that aggregate corporate governance disclosure index, board sub-committees, board size and independent non-executive directors are positive but insignificantly related to CBRR. Research limitations/implications The current study is based on secondary data, other methods of knowledge inquiry such as interviews and questionnaires may provide additional insights on the effectiveness of corporate governance on financial performance. Practical implications Overall, the results imply that corporate governance influences the performance of SOEs in Kenya. The results suggest that Mwongozo Code of Corporate Governance provisions should be changed to increase the number of women representations on board and the number of directors with doctoral qualifications because of their positive impact on the financial performance of SOEs in Kenya. Also, policymakers with remit over SOEs should re-evaluate why other corporate governance appear not to have an impact with a view of making the necessary changes. Originality/value The paper contributes to the dearth of literature on the efficacy of corporate governance on the financial performance of SOEs in developing countries.

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Section: Board Meetingsmentioning

confidence: 78%

Section: Gender Diversitymentioning

confidence: 83%

mentioning

confidence: 80%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate governance and financial performance of state-owned enterprises in Kenya

Abang'a

Tauringana

Wang’ombe³

et al. 2021

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Enforcement, corporate governance, and financial decisions

Mertzanis

Nobanee

Basuony

et al. 2023

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Purpose This study aims to analyze the impact of corporate governance on firms’ external financing decisions in the Middle East and North Africa (MENA) region. Design/methodology/approach The authors analyzed a unique set of panel data comprising 2,425 nonfinancial firms whose shares are traded on stock exchanges in countries in the MENA region. The authors fitted an ordinary least squares model to estimate the regression coefficients. The authors performed a sensitivity analysis using alternative measures of the critical variables and an endogeneity analysis using instrumental variable methods with plausible external instruments. Findings The results revealed that corporate governance characteristics of firms are strongly associated with their degree of leverage. They also showed that macrofinancial conditions, financial regulations, corporate governance enforcement and social conditions mitigate the impact of corporate governance on firms’ financing decisions. Research limitations/implications A larger sample size will further improve the results; however, this is difficult and depends on the extent to which increasing disclosure practices allow more corporate information to reach international databases. Practical implications This study provides new evidence on the role of corporate governance on firms’ financing decisions and documents the essential mitigating role of institutions, alerting managers to consider them. Originality/value This study is a novel attempt. Based on information from different data sources, this study explored the predictive power of corporate governance, ownership structures and other firm-specific characteristics in explaining corporate leverage in MENA countries. Overall, the analysis provides new evidence of the association between corporate governance and capital structure in the MENA region, highlighting the critical role of institutions.

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Effect of Board Diversity and Corporate Governance Structure on Operating Performance: Evidence from the Nepalese Enterprises

Cited by 2 publications

References 30 publications

Corporate governance and financial performance of state-owned enterprises in Kenya

Corporate governance and financial performance of state-owned enterprises in Kenya

Enforcement, corporate governance, and financial decisions

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