The Relationship Between Board Size and CEO Duality and Firm Performance: Evidence from Jordan

Qadorah, Almontaser Abdallah Mohammad; Fadzil, Faudziah Hanim

doi:10.11648/j.ijafrm.20180303.11

Cited by 18 publications

(7 citation statements)

References 13 publications

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“…The number of directors in the company is used to compute the Board of director's size, which is a key measure of its performance. The board of director's ability to provide appropriate support in decreasing agency costs that emerge from the company's ineffective management is expected to increase with its size, which will ultimately improve financial performance (Qadorah & Fadzil, 2018). As employees are less likely to function when the board size exceeds that, it becomes harder for the CEO to exert control.…”

Section: Literature Reviewmentioning

confidence: 99%

Board gender diversity and the financial performance of Pakistani non‐financial firms: A fuzzy‐set QCA approach

Naz

Lutfullah

Arshad

et al. 2023

J Corp Accounting Finance

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According to the upper echelon's theory, the decision-making process in regard to competitive strategies by the top management has an enduring impact on firm performance (Hambrick & Mason, 1984). Moreover, the attributes of the individuals in top management may also affect the decision-making process. The purpose of this research is to analyze the board gender diversity impact on the financial performance of the non-financial companies of Pakistan. Qualitative comparative analysis (QCA) is employed which is premised on Boolean algebra that sets foundation for the theoretical framework of complexity theory. The sample comprises of 74 non-financial firms listed on the KSE-100 Index. The results are modelled as a component of the intermediate solutions with board-level variables and gender diversity for the outcome variable (i.e., EVA and Tobin's Q). From board level variables, the impact of gender diversity and foreign directors is identified among most of the combinations whereas leverage is the prominent variable within the firm level variables, the boards of which tend to be small. The results showed a heterogeneous nature of response as board gender diversity exhibited stronger association in some configurations and in some cases it exhibited weaker association similar to that of (Pandey et al., 2022).Originality: This study is an attempt to explore the of board gender diversity role in a firm's performance using board level and firm level variables. Therefore, this work adds to the prior research by adding a complementarity-based methodology for analyzing board gender diversity.

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Section: Literature Reviewmentioning

confidence: 99%

Board gender diversity and the financial performance of Pakistani non‐financial firms: A fuzzy‐set QCA approach

Naz

Lutfullah

Arshad

et al. 2023

J Corp Accounting Finance

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“…This communicates that the CEODU in Indian public banks should not be encouraged and needs necessary checks on CEODU decision-making, therefore, for Indian public banks, the analysis leads to accepting the null hypothesis (H1) which supports the outlook of the agency theory and outraced the concepts of stewardship theory, in terms of CEODU. Thus, the relationship is in line with Goyal and Park (2002), Hsu and Chen (2020), Qadorah et al (2018) and Shivdasani and Zenner (2004). The negative impact of CEODU implies that in an emerging economy where the institutional legal framework is weak, the CEO sharing a dual position focuses on their own goals over the common goal of protecting and benefiting the…”

Section: Panel Data Regression Analysismentioning

confidence: 99%

“…This change initiates the debate about whether such separation on the corporate board is reflected in improved business performance. Although the findings of prior studies are mixed, few studies documented an inverse impact of CEODU on performance, (Duru et al, 2016;Hsu and Chen, 2020;Qadorah et al, 2018), while other studies advocate the fact that CEODU brought better results (Chang et al, 2019;Ozbek and Boyd, 2020). Such differences in results can be related to differences in the data sample set, choice of economy or nation, sample time period or performance indicator.…”

Section: Introductionmentioning

confidence: 97%

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Performance and CEO duality in Indian public banks: a moderating role of board independence

Singh

Sharma

2023

JAEE

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PurposeThe study aims to estimate the impact of the vigilant board independence (BIND) dimension that potentially neutralises the unfair influence of chief executive officer duality (CEODU) on Indian public banks' performance.Design/methodology/approachThe study takes into account the fixed-effects model to investigate the potential moderating effect of BIND in the relationship between CEODU and Indian bank performance. The econometric model is also robust against heteroscedasticity, serial correlation and cross-section dependence issues to ensure that the model is free from such biases. The study also addresses the major issue of endogeneity via vector autoregression and performs the analysis by considering one period lag of the explanatory variables.FindingsThe findings demonstrate that CEODU does not always lead to a negative outcome on the performance until or unless the board is monitored by the effective presence of outside directors.Research limitations/implicationsThe regulatory bodies consider the results to strengthen board capital where CEODU can benefit a business entity if vigilance BIND is present at or above a threshold point.Originality/valueThe study evaluated an under-researched role of BIND as a moderator that undermines the negative influence of CEODU on the performance of Indian banks. The study also establishes that the CEO's contribution to performance increases when the number of outside directors is at or above a certain threshold.

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“…The board of managements, the leading authority concerned with manager monitoring, is appointed by the shareholders and acts on their behalf to monitor the managers' decisionmaking activities to ensure their good faith and their shareholder value creation attitude (Qadorah and Fadzil, 2018). Directors participate in the business's economic life and have the responsibility of accountability to monitor the managers' actions and rectification (Jizi, 2017).…”

Section: Board Of Directorsmentioning

confidence: 99%

Entrepreneurship, Corporate Social Responsibilities, and Innovation Impact on Banks’ Financial Performance

et al. 2021

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The basic aim of this research was to check the impact of innovation, corporate social responsibilities (CSR), and entrepreneurship on the monetary performance of banks in five different countries: Qatar, Pakistan, China, the United States (US), and France. This research was conducted to measure the relationship of these factors and innovative workforce activities. The secondary data were collected from websites of twenty five banks in different countries, including Islamic and conventional banks. Different econometric analyses, such as descriptive statistical analysis, correlation coefficient test for measuring the interaction, and ordinary least square regression analysis for determining the impact of dependent and independent variables, were carried out. In the present study, entrepreneurship, CSR, and innovation were taken as independent variables. Board size, frequency of assemblies, and self-employed with large shareholders were included as sub-parts of entrepreneurship. On the other hand, the financial performance of banks was taken as the dependent variable. Return on assets (ROA) and return on equity (ROE) were considered parts of economic performance. The overall conclusions drawn in this study showed that there was a significant relationship between all the studied variables. The research provided useful insights into the long-debated question regarding the relevance of entrepreneurship and CSR.

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The Relationship Between Board Size and CEO Duality and Firm Performance: Evidence from Jordan

Cited by 18 publications

References 13 publications

Board gender diversity and the financial performance of Pakistani non‐financial firms: A fuzzy‐set QCA approach

Board gender diversity and the financial performance of Pakistani non‐financial firms: A fuzzy‐set QCA approach

Performance and CEO duality in Indian public banks: a moderating role of board independence

Entrepreneurship, Corporate Social Responsibilities, and Innovation Impact on Banks’ Financial Performance

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