How does board structure impact on firm performance in the UK?

Alqatan, Ahmad; Chbib, Imad; Hussainey, Khaled

doi:10.22495/cbv15i2art2

Cited by 48 publications

(42 citation statements)

References 49 publications

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“…Boards with no more than seven or eight members are seen to be effective (Jensen, 1993). Similarly, for a board to be effective it must have a maximum of 10 members, but preferably between eight and nine members (Lorsch & Lipton, 1992;Alqatan et al, 2019). The argument is that a small board is more beneficial because: (1) decisions can be made at a faster pace (Lorsch & Lipton, 1992) (2) coordination becomes easier, which makes any management manipulation difficult (Haniffa & Hudaib, 2006); (3) there is better communication and interaction between members (Ozkan, 2011).…”

Section: Theoretical Framework Literature Review and Hypothesesmentioning

confidence: 99%

The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

Idris¹,

Ousama²

2021

APMAJ

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This study aimed to examine the relationship between board structure and firm performance measured by return on equity (ROE) and return on asset (ROA). 42 firms listed on the Qatar Stock Exchange (QSE) in 2018 were examined, using regression analysis. The study found that gender diversity (i.e., female directors on the board) had a positive significant relationship with firm performance in both measures, i.e., ROE and ROA. In addition, only board meeting and non-executive directors had significant relationships with firm performance measured by ROA. The findings of the study have some practical implications for some stakeholders, such as listed companies in Qatar and the Qatar Financial Market Authority. The Qatari listed companies will be able to understand the impact of board structure and the complementary benefits that may affect firm performance and thus strengthen the function of their boards. The Qatar Financial Market Authority will be able to understand the current practices of the corporate governance (CG) code; its strengths and weakness. Hence, it will be able to improve the code in order to overcome the weaknesses and strengthen good practices. Keywords: corporate governance, board independence, gender diversity, nationality diversity, firm performance

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Section: Theoretical Framework Literature Review and Hypothesesmentioning

confidence: 99%

The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

Idris¹,

Ousama²

2021

APMAJ

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“…Also, institutional factors exerted a positive moderating effect on the relationship. Alqatan, Chbib, & Hussainey (2019) also reported a significant positive relationship between board independence and Tobin's Q measure of performance using FTSE data of 100 nonfinancial firms from 2012 to 2015. Koji, Adhikary, & Tram (2020) traced a negative relationship between board independence and performance in their study of 861 non-family and 551 family firms in Japan using data from 2014 to 2018.…”

Section: Introductionmentioning

confidence: 94%

Conservative Business Strategy as Moderator of Board Independence and Corporate Performance Nexus in Nigerian Financial Companies

Osazevbaru

2021

Asian Economic and Financial Review

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This paper adds to prior literature by investigating the strength of conservative business strategy in the relationship between board independence and firm performance. The application of an analytical framework that enhances the simultaneous analysis of interrelated dependency contributes to the expansion of the methodological scaffold for analyzing institutional characteristics of emerging markets.

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“…According to Alqatan, Chbib & Hussainey [5], stakeholder theory is used to create a scenario that measures the company's performance when a company's directors direct their energies at rewarding all stakeholders instead of directing their energies solely towards rewarding the shareholders. The stakeholder theory considers organizations a collection of groups whose objectives must be coordinated by managers [27].…”

Section: Stakeholder Theorymentioning

confidence: 99%

Board Gender Diversity and Performance of Listed Deposit Banks in Nigeria

Olufemi¹

2021

EBM

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Gender diversity is becoming an issue for boards of companies, regulators, and investors worldwide. Nigeria is not an exception. It is assumed that board gender diversity significantly improves corporate governance and financial performance. Recently, women in both senate and House of representative met and agreed to pursue 35% appointment in public appointments. The women eventually sent a representation to discuss this with President Mohammadu Buhari. This study's main objective is to examine the relationship between gender diversity and quoted deposit money banks' performance in Nigeria using descriptive statistics, trend, and correlation analysis. Data was collected through the websites of 13 publicly quoted banks on the Nigerian stock exchange. Gender of directors was sieved by using the biography section of Annual report, use of gender-specific pronouns 'she,' the third is the usage of address 'Mr' and 'Mrs' while the use of the first name was also used to determine the Gender. Data were analysed by using SPSS. Trend analysis of each bank's percentage of female board members between 2015 and 2019 shows an unstable trend. The rate at which the female Gender occupies the Board in the banks does not appear to have a specific pattern to make inferences. It also lacks a strong relationship between the number of female board members and banks' performance. There is a weak negative relationship between earnings per share and female board members' percentage. It can be concluded that the inclusion of women on the Board of a company does not necessarily translate into an improvement in a company's financial performance.

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How does board structure impact on firm performance in the UK?

Cited by 48 publications

References 49 publications

The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

Conservative Business Strategy as Moderator of Board Independence and Corporate Performance Nexus in Nigerian Financial Companies

Board Gender Diversity and Performance of Listed Deposit Banks in Nigeria

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