Board Structure

The study investigates the relationship between six board compositions and stock returns. The results indicate a significant association between various board compositions and stock returns. Specifically, board size and executive directors have a negative impact, whereas independent directors enhance stock returns. Busy directors positively impact the abnormal stock returns for the companies in the non-financial industry, which implies that busy directors who serve on more boards tend to be well connected. More importantly, the results indicate a significant positive relationship between board tenure and stock returns. Board service time is perceived as the board quality of knowledge and experience from the investors' point of view.

Introduction 1.1.Introduction Ruzaidah and Takiah (2004) found that the audit committee is essential for management oversight and control. The committee must monitor the company's operations and internal controls to protect shareholders. The audit committee (AC) advises the board on financial and operational issues and helps develop the company's strategy. An effectiveness of the audit committee would improve the company's competitiveness and performance, which rely on external variables like the economy (Charan, 1998; Craven and Wallace, 2001). Watthne and Heide (2000) say a good audit committee would prioritize shareholder value above management's self-interest. The audit committee oversees financial reporting, financial report review, internal accounting controls, the audit process, and, more recently, risk management (Klein, 2002). Audit committees strengthen transparency, enforcement, and board and key staff education and training. In March 2013, the Institute of Chartered Accountants of Sri Lanka Securities and Exchange Commission of Sri Lanka published the Code of the Best Practices of Corporate Governance, which recommends audit committee size, independence, duties, and responsibilities. Porter and Gendall (1993) found that unexpected corporate failure and corporate malfeasance led to the formation of audit committees in Canada, the United States, the United Kingdom, Australia, and New Zealand. In 2002, the Institute of Chartered Accountants of Sri Lanka established the Code of Best Practice for Audit Committees. Malaysia formed audit committees after business scandals, according to Teoh and Lim (1996). The literature (Neely, Gregory, & Platts, 1995) defines "performance measurement" as assessing an action's effectiveness and productivity. Lebas (1995) defines performance measurement as "the transfer of the complex reality of performance into organized symbols that can be related to and relayed under the same conditions." Any sector's Sri Lankan promotion depends on the audit. Modern corporations emphasize market-centric thinking to improve financial performance.

The insurance industry is a vital pillar of Ghana's economy, providing financial security, risk management, and investment opportunities. Corporate governance plays a crucial role in determining the performance and sustainability of insurance companies, influencing decision-making, operational efficiency, and overall financial health. Effective governance structures ensure transparency, accountability, and strategic oversight, which are essential for fostering investor confidence and industry growth. This study examines the impact of corporate governance practices on the performance of insurance companies in Ghana, focusing on three key factors: board size, board independence, and CEO duality. Using the Ordinary Least Squares (OLS) regression technique, this study analyzes panel data from 20 insurance firms spanning the period from 2011-2020, sourced from National Insurance Commission (NIC) reports, to provide empirical insights into governance dynamics within the industry. The findings reveal that board size significantly impacts corporate performance, while board independence and CEO duality have minimal effects. Additionally, the study highlights the crucial role of board composition in enhancing return on assets (ROA), a key measure of financial performance. The results suggest that having an optimally structured board can improve decision-making processes, enhance managerial oversight, and ultimately drive company profitability. These insights are particularly valuable for policymakers, regulatory authorities, and industry stakeholders aiming to refine corporate governance frameworks to foster sustainable growth in the insurance sector. These insights are valuable for policymakers, regulators, and industry stakeholders seeking to refine governance frameworks for sustainable growth. Given the notable impact of board size, regulatory bodies like the NIC should establish guidelines to optimize board composition, balancing efficiency and oversight. Strengthened governance policies will enhance investor confidence, promote corporate accountability, and contribute to Ghana's economic development.

Management of organisations pay much attention on how to make financial reports look attractive through the use of flexibilities in the recognition of assertions in the financial statements. Yet, users of accounting information seem not to have perceived knowledge about this practice which has led to collapse of many major companies in Nigeria and abroad. This study examined the effects of creative accounting on the credibility of reported profits of companies in Nigeria. Methodology employed was the conduct of an empirical analysis of working capital accruals, proportion of nonexecutive board members and dividend rates (used as proxies for creative accounting) and reported profits (used as proxy for credibility) of sampled corporations listed on the Nigerian Stock Exchange. Findings from our analysis suggests that companies with high accrual disclosures employ creative accounting practices and as such, financial reports may have issues of credibility. It was recommended that professional bodies and regulators should take the lead in controlling these practices through appropriate standards.

Purpose. This study aims to determine the influence of gender diversity on the board of directors and the size of the board of directors on the quality of financial reporting in the Health Sector. Methods. This study uses the population
of health sector companies listed on the Indonesia Stock Exchange during the period 2014-2023. Through the purposive sampling method, 106 observation data (firm-year) were obtained from companies that published annual reports during the
period and compiled financial statements in rupiah. Furthermore, the data were further selected by excluding years in which the company exhibited negative profit management practices, in order to meet the criteria of this study. The data analysis
technique used in this study is multiple linear regression analysis supported by hypothesis testing, descriptive statistics and classical assumption tests. Findings. The results of the hypothesis test show that gender diversity in the board of directors
has a significant effect on the quality of financial reporting. And the size of the board of directors does not have a significant influence on the quality of financial reporting. Implication. The implications of this study show that gender diversity on the
board of directors can be an effective strategy in improving the transparency and quality of financial reporting, especially in the health sector. Therefore, companies are advised to consider gender representation in the preparation of the board of
directors structure to strengthen corporate governance.

This paper examines the impact of Corporate Governance Mechanisms on the financial performance of listed insurance firms in Nigeria. The Paper investigates whether CEO status, board size and board composition have impact on the financial performance as measured by Return on Asset (ROA) and Return on Equity (ROE). encouraged so that corporate governance could be strengthened to allow room for enhanced financial performance of the listed insurance companies in Nigeria.

Purpose: As per agency theory prospective, board gender diversity enhances the corporate leadership structure which mitigates agency conflicts among stakeholders. Therefore, this study investigates the impact of female directors on board, and female CEOs on firm performance. We also uses board size, and board independence as board level control, while leverage, firm size, capital expenditure & tangibility as firm level control. Design/Methodology/Approach: The study uses a panel data starting from 2005 to 2020 on annual basis. To resolve endogeneity and unobserved heterogeneity problems in panel data analysis, study uses static (fixed effect, & random effect) and dynamic (GMM) estimation techniques in Pakistan. Findings: Result shows the positive impact of female directors on board and female CEOs on firm performance. These findings are robust under alternative measures of firm performance. Implications/Originality/Value: The study suggests that female representation and female CEOs...

While often criticized, independence remains the ultimate criterion for evaluating board composition, whether for regulators or shareholder activists. In this study, we examine the relationship between board independence and firm operating performance in a panel of French listed companies, paying particular attention to heterogeneity and endogeneity concerns. We take advantage of an original database, with a time-series dimension that can be used to mitigate heterogeneity and dynamic endogeneity issues through GMM estimators. In addition, this database can be disaggregated at the individual (director) level. This design enables us to introduce firm fixed effects and individual fixed effects in (firm) performance equations, thereby controlling for heterogeneity at the firm and individual levels. To our knowledge, this is the first paper so far to provide a systematic account on this issue for France. Our main result is to document a significant negative relationship between accounting performance and the independence status (irrespective of the person). This result supports the argument of an information gap suffered by independent board members, as developed by Adams and Ferreira (2007).

The core purpose of this study is to empirically analyze the impact of audit and remuneration committees on the performance of the cement and textile firms listed on Pakistan Stock Exchange (PSX) for years 2012-2018.The methodology-The study focuses on the impact of attributes of audit and remuneration committees on firm performance. A simple random sampling technique is used to collect the secondary data from the cement and textile annual reports of the 63 cement and textile firms. The findings of the study support the postulation of agency theory and stewardship theory in the context of cement and textile industry of Pakistan. The study provides valuable inputs especially for the strategies of audit and remuneration committees to achieving the desired financial outcomes. Audit committee attributes have a positive and significant impact on firms return on asset (ROA) and return on equity (ROE). Likewise, remuneration committee’s attributes also have positive and significant impact ...

Purpose: It is a common belief that an independent board improves firm financial performance and shareholders’ confidence.The separate leadership structure and independent chair of the board are considered to strengthen independence of the board. This paper, therefore, proposes to investigate that how Malaysian Code on Corporate Governance (MCCG 2012) impacted board independence (separate leadership structure and independent chair) and its relation with firm performance and shareholders’confidence. Design/Methodology/Approach: The proposed model of the paper based on agency theory and MCCG 2012, recommends to investigate that how MCCG 2012 impacted shareholders’ confidence with a mediation of firm performance in pre and post context of the code from 2010-2013.The proposed data regarding corporate governance will be collected from annual reports while firm financial performance (ROE & EPS) and shareholders’ confidence (share price) from DATA STREAM for a sample of 300 Malaysian liste...

Our study examines the relationship between four indicators of board structure and firm value and the extent to which this relationship may be affected by the level of growth options relative to assets-in-place. These indicators are the level of accounting expertise, gender diversity, the level of independence and the size of the board. Using a sample of 543 firm-years covered by 125 firms listed on the New Zealand Exchange for the 1998-2007 financial years, we found that these board structure indicators together with the level of growth options significantly impact on firm value after effectively controlling for the endogeneity problem. Specifically, firms with a lower number of directors with accounting expertise and/or a higher number of female directors on the board have higher firm value. For firms with a higher level of growth options, a higher percentage of independent directors on the board and/or a larger board are more value relevant. Our findings related to board accounting expertise and board gender diversity particularly may have important implications for corporate regulators.

The Financial Reporting Council (FRC) issued guidance for companies regarding the disclosure of significant changes in principal risks. We explore the nexus between Brexit disclosure and trade credit decisions. Our findings suggest a positive relationship between Brexit disclosure and trade credit decisions; however, this relationship varies across industries. This variation indicates that UK companies are responsive to regulatory requirements and pressures, undertaking the necessary adjustments to minimise their exposure to Brexit-related risks.

The paper extends the ownership study by examining the different types of large shareholders in relation to its impact on organizational outcome in Indonesia using a dataset consisting of 190 non-financial companies listed in Jakarta Stock Exchange in 2002. The study investigates the effect of family ownership, foreign blockholder, domestic institutional shareholders, and the board of directors on firm performance. The results confirm the different impact of different large shareholders type on firm performance. Controlling family ownership is more likely to exacerbate agency problems while the presence of foreign investor is related to superior firm performance. Domestic blockholders is insignificantly related to firm performance. However, the interaction effect between family and domestic blockholders ownership is negatively related to firm performance, offering empirical evidence to the existence of interlocking blockholders in Indonesia to deprive minority shareholders from their rights.

After recent corporate scandals and financial crises, there has been a lot of discussion whether there should be more female representatives in top management and company boardrooms. The movement of women into management, including upper levels of management, has been an important research topic for many years. The study contributes to the empirical literature by examining the relationship between board gender diversity and financial performance of banking sector in Georgia, a country which historically has a very masculine culture. It has been found that presence of just one woman on board has a negative and significant impact on the performance of banks. However, if there are two or more women on board the impact becomes positive and significant, which means gender diversity matters. This research gives new light on Georgia's boardroom dynamics, because it is the first to analyze Georgian reality and will contribute to the discussion about gender quotas, which has already started in politics.

Corporate governance plays two broad important roles of (i) stewardship and accountability role, that is, it is a mechanism designed to monitor managers and enhance performance of the firm; and (ii) entrepreneurship, that is, providing the mechanisms that motivate managers to create and sustain corporate competitiveness, thereby optimizing shareholders’ wealth. China, a country that does not align with the Anglo-American or stakeholder models of corporate governance (CG), but which is a major economic force in the transition economy. It is steadily moving away from centralised planning of its innovation system by the state to an increasingly open system involving technology outsourcing and imports, and foreign investors’ involvement makes it an interesting context to examine the relationship between CG structures, corporate entrepreneurship (CE) and firm performance. Consequently, this thesis aims to investigate the effects of CG structures and CE on firm performance among Chinese l...

Purpose: Taxation basically occupies an important place in the strategic decisions of companies, therefore, business are thinking to adopt a dynamic and active method for tax management. This study examine the moderating role of board independence, and board size in the relation between tax avoidance, and business strategy in developing economy of the Pakistan. Design/Methodology/Approach: The sample of study consist of 125 non-financial companies listed on Pakistan stock exchange with time period of 5 years from 2013 to 2017 on annual basis. Study uses static (fixed effect, & random effect) and dynamic (GMM) panel data estimation techniques. Findings: The result shows that increase in board size of a prospector firm will increase its trend to avoid taxes. The finding also reveals that an increase in the independent directors in prospector firms will decreases tax avoidance activities in emerging economies. Additionally, result shows that firm profitability and leverage are negative...

We examine how board leadership influences the frequency of supervisory board meetings, and how meeting frequency, in turn, affects firm performance. Utilizing a 10-year longitudinal dataset of German and Indonesian listed firms, we find that CEOs in both countries are more likely to foster lower board meeting frequency. However, in Germany, chairmen and female independent directors are more likely to promote higher board meeting frequency, while in Indonesia, affiliated directors and female independent directors have no significant influence. More frequent board meetings lead to better firm performance in Indonesia but not in Germany.

This paper aims to examine the impact of board's characteristics on the financial performance of firms operating in the energy industry, during a certain and uncertain time. For this purpose, we chose four board's characteristics: duality of the CEO, size of the board, the board meetings and board's independence, which represent our independent variables. For measuring financial performance, we chose the Return of Assets (ROA) and Return of Equity (ROE) ratios. The data used was collected from Refinitiv Eikon database and includes a sample of 359 companies, for the period 2018-2021. The SPSS statistical program was used to run the regression model on the selected sample. This study provides mixed results on the impact on board's characteristics on the financial performance of companies operating in the energy industry. During certain time, CEO duality and board's meetings are negatively correlated with ROE, but positively correlated with ROA. The size and board's independence negatively affect the financial performance of companies for both ROA and ROE before and during COVID-19. This article contributes to previous studies conducted on the link between corporate governance and firm financial performance, showing mixed results. The results obtained may help management companies to carry out their corporate governance.

This paper aims to examine the impact of board’s characteristics on the financial performance of firms operating in the energy industry, during a certain and uncertain time. For this purpose, we chose four board’s characteristics: duality of the CEO, size of the board, the board meetings and board’s independence, which represent our independent variables. For measuring financial performance, we chose the Return of Assets (ROA) and Return of Equity (ROE) ratios. The data used was collected from Refinitiv Eikon database and includes a sample of 359 companies, for the period 2018-2021. The SPSS statistical program was used to run the regression model on the selected sample. This study provides mixed results on the impact on board’s characteristics on the financial performance of companies operating in the energy industry. During certain time, CEO duality and board’s meetings are negatively correlated with ROE, but positively correlated with ROA. The size and board’s independence negati...

This study, conducted with the purpose of assessing profitability predictors of microfinance institutions (MFIs) in Sri Lanka. The study has been conducted by using a panel data analysis and the sample consists of nine MFIs for six-year period where data were collected through the audited financial reports. Institutional size, age, financing structure (FSR), quality of portfolio (QOP), operational efficiency (OER) as well as the debt equity (DER) considered as predictors of the study.

Prior studies have provided some inconclusive findings regarding the effect of independent directors (INEDs) on firm performance. Drawing insights from the theories of resource dependence (RD), human capital (HC), and social capital (SC), this research argues that the mere presence of INEDs (motivation) is insufficient but rather the appointed INEDs need to have sufficient HC and SC (ability) in the forms of knowledge, expertise, and connection to effectively perform their roles. This study extends prior research by investigating the effects of INEDs’ financial knowledge (as indicator of INEDs’ HC) and INEDs’ external directorship (as indicator of INEDs’ external SC) on firm performance. A total of 300 non-financial firms listed on Bursa Malaysia in the year 2013 were selected using stratified random sampling method. Results indicated that INEDs’ financial knowledge does not have any relationship with firm performance. In contrast, an inverted U-shaped relationship between INEDs’ ex...

In this study, the reverse impact of firm corporate performance on board structure is empirically examined using a large cross section of 50 manufacturing firms in Nigeria. The study makes a divergence from previous studies by noting that such a reverse effect is possible and examining this effect of performance on board structure in Nigeria. The panel data estimation technique is employed on the pooled data for the firms over a ten-year period (2004-2013) and estimation is performed using four measures of firm performance and two measures of board structure. The results show that there is actually reverse impact of firm performance on board structure although the effect is quite weak. The only performance variable that exerts significant impact on board structure (board size and independence) is earnings per share and, to a lesser degree profit margin. Moreover, firm size is shown to be an essential factor in explaining the general behavior of firm performance and also the pattern ...

This paper examines the relationship between firms' ownership structure and financial performance in Nigeria, using a sample of thirty listed companies between 2001 and 2008. Using pooled OLS as a method of estimation and after controlling for four firm-specific characteristics, our results show a negative and significant relationship between ownership structure (director shareholding) and firm financial performance (ROE). This is in support of Entrenchment hypothesis. Also, our study does not support a non-linear relationship between ownership structure and firm performance.

The broad objective of this research was to determine the effect of board structure on the performance of financial institutions in Kenya and also to find out what the intervening and mediating influence of the tenure of the CEO and firm’s characteristics on this relationship might be. The specific objectives included; to examine the influence of board structure on performance of financial institutions in Kenya; to determine the intervening influence of CEO tenure on the association among board structure and performance of financial sector firms in Kenya; to examine the moderating effect of the firms’ characteristics on the association among board structure and performance of financial institutions in Kenya; and to ascertain the joint effect of board structure, CEO tenure and firms’ characteristics on performance. Secondary data was collected for a ten-year period from 2006 to 2015. Moderated and stepwise regression models and correlation analysis were adopted for the investigation ...

The formation of the board of directors has led to the ever growing debate in the area of corporate governance in Nigeria. Essentially, there is a growing concern about the effectiveness of the board of director to firm performance, This study attempts to investigate an empirical study on the influence of board mechanisms on the perceived firm performance of listed firm in Nigeria. The underpinning theory of the study is rooted in agency theory, supported by three theories of corporate governance such as stewardship, resource dependence, and stakeholder theory to increase the understanding of the influence of board mechanisms to perceived firm performance. The data were collected through proportionate stratified random sampling techniques. The questionnaires were sent to the respondents. Out of 476 questionnaires sent, 401 returned. The number of valid questionnaires is 362. Data were analyzed using partial least squares structural equation modeling (PLS-SEM). Empirical findings sho...

This study examined the effect of corporate governance on financial performance of quoted pharmaceutical companies in Nigeria. The specific objectives of the study were to determine whether corporate governance mechanisms have any effect on firm financial performance. The study employed descriptive research design. Seven (7) out of the eight (8) listed firms were chosen through a purposive sampling technique and data extracted from the annual reports of these firms from year 2015 to 2020. A panel data regression was used to analyse the data. Corporate Governance was proxied with board size (BSize), board composition (BComp) and board gender diversity (BGDiv) while performance was proxied with Return on Capital employed (ROCE) and Return on Equity. The study found that Board size, board gender diversity and board composition have little and insignificant impact on financial performance of pharmaceutical companies in Nigeria. Notwithstanding the above findings, it is recommended that the listed pharmaceutical companies should nevertheless ignore these proxies of corporate governance as they may have positive effect in order areas in the organization which may in turn affect profitability and financial performance in the long run such as corporate image, fraud prevention and balanced wider business knowledge.

While highly concentrated equity ownership of publicly-listed firms is a common phenomenon in most developing capital markets worldwide, the various factors that influence the performance of firms controlled specifically by family blockholders is only partially understood at present. Therefore, we scrutinize the many channels/means by which this distinctive phenomenon manifests itself. On the basis of data covering 84 of the largest Malaysian publicly-listed, familycontrolled firms in 2008, we found that the performance of family-controlled firms are significantly influenced by characteristics such as ethnicity of controlling families (contextspecific), nature of family involvement in firm management and presence of other blockholders.

This paper investigates the association between the board structure of a firm and the possibility of information security breaches. Building on the agency theory and resource dependence theory, we hypothesize that the board structure could affect the guidance and advice capability of the board on the executives' decision of information security management. Our results show that the board size and the number of independent directors could increase the possibility of security breaches while the average and heterogeneity of ...

Banks are one of the essential pillars of the financial sector (Alzuod & Alqhaiwi, 2022), however, banking is a high-risk industry (de Andres & Vallelado, 2008). The aim of this paper is to investigate the impact of the board’s structure and ownership structure on the financial risks of Jordanian commercial banks. Data was gathered manually from the financial reports. Notably, the study addressed two types of financial risks: liquidity risk and credit risk. The study sample included commercial banks listed on the Amman Stock Exchange (ASE) to cover the period 2014–2019. To achieve the study’s objectives, multiple regression analysis was run to test the hypotheses. The results reveal a negative, statistically significant impact of the board size, institutional ownership, and bank size on liquidity risk. The results also demonstrated a negative effect of board independence, ownership concentration, bank size, and CEO duality on credit risk. In sum, the results support previous studies...

Lack of effective corporate governance mechanism and disclosure transparency frameworks have been partly blamed for the 1997-1999 East Asia economic crises. Consequently, Indonesia, together with many countries across the globe have been actively reviewing and improving their corporate governance and transparency mechanisms. Theoretically, corporate governance mechanism is designed to monitor and evaluate decisions made by managers in the management of a company to reduce agency cost and information asymmetry between the shareholders and the management. The main objective of the study is to examine the effect of corporate governance mechanism on the level of voluntary disclosure in Indonesia, a country that has adopted a two-tier board system. The two-tier board system is considered a better system compared to one tier board system since all members of the board are non-executives. Therefore, the board members are more independent and objective in supervising and monitoring the performance of executive managers. This study investigates four corporate governance variables which are expected to influence the level of voluntary disclosure; (1) composition of independent members of Board of Commissioners (BOC), (2) composition of family members on the BOC, (3) audit quality, and (4) managerial ownership. The sample consists of companies listed on Bursa Saham Indonesia for the year ended 2008. The influence of corporate governance on the level of voluntary disclosure is analyzed using multiple regression method. As expected, the results show that the compositions of independent BOC and auditor's quality have a positive and significant relationship with the level of voluntary disclosure. Meanwhile, the composition of family members on the BOC has negatively influenced the disclosure. The results suggest that the corporate governance structure in a two-tier board system, specifically in Indonesia, is not significantly different from a one tier board system in influencing the level of voluntary disclosure.

This study adds to the literature on corporate governance and corporate financial performance by assessing the effect of board composition on the financial performance of listed firms in Ghana. Using a static panel regression model, the results show that contrary to the agency theory, inside directors tend to have a positive and significant effect on corporate financial performance whilst outside directors have a negative but statistically insignificant effect on corporate financial performance of the listed firms in Ghana. In addition, it was found that the existence of nomination committees tend to have a negative effect on corporate financial performance of listed firms in Ghana. The study recommends that listed firms in Ghana should look at how to continuously empower inside directors to be able to perform their work well instead of bringing in more outside directors to check them. Moreover, the nomination process of board members must be made transparent to achieve the objective of recruiting competent and ethical minded executives to the board. Guidelines for executive recruitment to the board must be established and if possible the nomination committee must employ the services of executive-hunting agency which would assist the committee in the recruitment process.

The purpose of the study was to investigate the influence of corporate governance characteristics on the financial performance of Rural and Community Banks in the northern sector of Ghana. The study was quantitative in nature employing the explanatory research design in fulfilling its objectives. Descriptive statistics and panel data regression were applied to data gathered from sixteen rural and community banks over the years ranging from 2007 to 2019. It was found that board composition has a positive but insignificant influence on the return on asset and return on equity of rural and community banks in the northern part of Ghana. Board Committee has a positive and significant influence on the return on asset and return on equity of rural and community banks in the northern part of Ghana. CEO duality negatively and significantly influences ROA and ROE. In connection with the findings, we encourage rural and community banks to constantly evaluate their board composition and committees to determine what to put in place to strengthen them, while putting in place measures to separate CEO and chairmanship positions. The study will enlighten policymakers and management of rural and community banks in the northern sector of Ghana on how effective their board composition, board committee, and CEO duality have been while controlling for bank size and age.

The purpose of the study was to investigate the influence of corporate governance characteristics on the financial performance of Rural and Community Banks in the northern sector of Ghana. The study was quantitative in nature employing the explanatory research design in fulfilling its objectives. Descriptive statistics and panel data regression were applied to data gathered from sixteen rural and community banks over the years ranging from 2007 to 2019. It was found that board composition has a positive but insignificant influence on the return on asset and return on equity of rural and community banks in the northern part of Ghana. Board Committee has a positive and significant influence on the return on asset and return on equity of rural and community banks in the northern part of Ghana. CEO duality negatively and significantly influences ROA and ROE. In connection with the findings, we encourage rural and community banks to constantly evaluate their board composition and committees to determine what to put in place to strengthen them, while putting in place measures to separate CEO and chairmanship positions. The study will enlighten policymakers and management of rural and community banks in the northern sector of Ghana on how effective their board composition, board committee, and CEO duality have been while controlling for bank size and age.

As the major shareholder, Malaysian Government in 2004 has embarked on the Government linked Companies (GLCs) transformation policy program that mainly emphasizes on enhancing the corporate governance mechanisms of the State owned Enterprises (SOEs) in order to enhance effectiveness of the board. The paper aims to examine the impact of corporate governance mechanisms as embedded in the transformation program on the practice of earnings management. In particular, the study uses data for two periods of time (pre and post transformation), and examine whether the period of post transformation policy has experienced any improvement of board monitoring role in curbing earnings management activities. The main findings show that there is an increase of earnings management activities in post transformation period. Further, the findings revealed that all corporate governance mechanisms have little impact to curb earnings management activities except for board meetings and leadership structure in the post transformation period. The board meetings and separate role of two top positions in the companies were shown to have negative impact on earnings management post transformation policy and that relationship do not hold for the period pre transformation policy. Although the study has shown positive preliminary impact of tightening corporate governance in GLCs, scope to expand the research was also discussed.

The presence of board members with good governance attributes is value-relevant since it influences investors’ investment decisions. The value relevance is expected to improve with the newly introduced extended audit report to disclose key audit matters (KAMs). KAM disclosure provides information about issues faced by external auditors in the auditing of a company’s financial statement. Since the disclosure of KAM involves discussion and negotiation between the board and external auditor, it gives an indication that board value relevance can be affected by KAM disclosure. Using 931 firm-year observations from firms listed on the Bursa Malaysia between 2016 and 2019, this study re-examined the value relevance of the board and whether such value relevance improves with the disclosure of KAMs. The findings indicated that some board attributes influenced investors’ reactions negatively. The disclosure of KAM served as both an indirect mediator and a complementary mediator to increase th...

Government linked companies (GLCs) play a unique role in the Malaysian public sector and are perceived to be the key drivers of the economy wielding influence in the financial market. This study investigates the impact of an important governance mechanism, i.e. the board of directors on performance of 32 Malaysian listed GLCs for the period 2008 to 2013. The board attributes examined include board size, board structure, board independence, board competence, board meetings and directors’ equity ownership. The three proxies of financial performance employed are return on assets (ROA), return on equity (ROE) and earnings per share (EPS) with firm size and leverage being used as control variables. We find board size to have a positive but insignificant relationship with ROA whilst board structure, board independence and board competence indicate a positive relationship with ROE. Board competence also shows a positive relationship with EPS. However, board independence and directors equit...

Evidence from research conducted on corporate accounting indicates that the interaction of environmental factors in fluences disclosure practices. The purpose of this study is to examine the importance of various corporate governance and cultural (race and education) characteristics, in addition to firm–specific factors, as possible determinants of voluntary (non–mandatory accounting and non–accounting information) disclosures in the annual reports of Malaysian listed corporations. The results of the regression analysis indicate significant associations (at the 5 per cent level) between two corporate governance variables (viz. chair who is a non–executive director and domination of family members on boards) and the extent of voluntary disclosure. This finding has implications for corporate governance policy formulation by the Malaysian Institute of Corporate Governance (MISG). One cultural factor (proportion of Malay directors on the board) is significantly associated (at the 5 per ...

The data were collected on a sample of 245 Thai nonfinancial listed companies to examine the effect of board structure on firm performance. Findings: The results show that neither independent directors nor grey directors are the significant determinants of improving firm value. Research limitations/implications: This research was confined to 245 Thai nonfinancial listed companies. It would be useful to replicate it using larger samples under different country settings. Practical implications: The findings provide guidance to top managers in deciding the Board structure as corporate value is also grounded in corporate board structure. Originality/value: The paper provides far reaching implications for corporate managers about the relationship between Board characteristics and corporate value.

PurposeThis paper aims to examine the influence of corporate board structure on corporate value.Design/methodology/approachThe data were collected on a sample of 245 Thai non‐financial listed companies to examine the effect of board structure on firm performance.FindingsThe results show that neither independent directors nor grey directors are the significant determinants of improving firm value.Research limitations/implicationsThis research was confined to 245 Thai non‐financial listed companies. It would be useful to replicate it using larger samples under different country settings.Practical implicationsThe findings provide guidance to top managers in deciding the Board structure as corporate value is also grounded in corporate board structure.Originality/valueThe paper provides far reaching implications for corporate managers about the relationship between Board characteristics and corporate value.

This paper examines the relationship between board structure and corporate risk taking in the UK financial sector. We show how the board size, board independence and combining the role of CEO and chairperson in boards may affect corporate risk taking in financial firms. Our sample is based on a panel dataset of all publicly listed firms in the UK financial sector, which includes banks, insurance, real estate and financial services companies over a ten year period (2003-2012). After controlling for the effects of endogeneity through the application of the dynamic panel generalized method of moments estimator, the findings of this study suggest that the presence of non-executive directors and powerful CEOs in corporate boards reduces corporate risk taking practices in financial firms. The negative relationship can be explained within the agency theory context, where managers are regarded as more risk averse because of the reputational and employment risk. An increased power concentration is therefore expected to enhance the risk aversion behaviour of directors. The findings however, do not show any significant effect of board size on corporate risk taking in financial firms. As this study covers recommendations of the UK Corporate Governance Code on the role of corporate boards in managing firms' risk, the empirical evidence could be useful for corporate governance regulation and policy making.

As the major shareholder, Malaysian Government in 2004 has embarked on the Government linked Companies (GLCs) transformation policy program that mainly emphasizes on enhancing the corporate governance mechanisms of the State owned Enterprises (SOEs) in order to enhance effectiveness of the board. The paper aims to examine the impact of corporate governance mechanisms as embedded in the transformation program on the practice of earnings management. In particular, the study uses data for two periods of time (pre and post transformation), and examine whether the period of post transformation policy has experienced any improvement of board monitoring role in curbing earnings management activities. The main findings show that there is an increase of earnings management activities in post transformation period. Further, the findings revealed that all corporate governance mechanisms have little impact to curb earnings management activities except for board meetings and leadership structure in the post transformation period. The board meetings and separate role of two top positions in the companies were shown to have negative impact on earnings management post transformation policy and that relationship do not hold for the period pre transformation policy. Although the study has shown positive preliminary impact of tightening corporate governance in GLCs, scope to expand the research was also discussed.

Purpose: Taxation basically occupies an important place in the strategic decisions of companies, therefore, business are thinking to adopt a dynamic and active method for tax management. This study examine the moderating role of board independence, and board size in the relation between tax avoidance, and business strategy in developing economy of the Pakistan. Design/Methodology/Approach: The sample of study consist of 125 non-financial companies listed on Pakistan stock exchange with time period of 5 years from 2013 to 2017 on annual basis. Study uses static (fixed effect, & random effect) and dynamic (GMM) panel data estimation techniques. Findings: The result shows that increase in board size of a prospector firm will increase its trend to avoid taxes. The finding also reveals that an increase in the independent directors in prospector firms will decreases tax avoidance activities in emerging economies. Additionally, result shows that firm profitability and leverage are negative...

The study investigates the relationship between six board compositions and stock returns. The results indicate a significant association between various board compositions and stock returns. Specifically, board size and executive directors have a negative impact, whereas independent directors enhance stock returns. Busy directors positively impact the abnormal stock returns for the companies in the non-financial industry, which implies that busy directors who serve on more boards tend to be well connected. More importantly, the results indicate a significant positive relationship between board tenure and stock returns. Board service time is perceived as the board quality of knowledge and experience from the investors' point of view.

The relationship between ex-ante measures of uncertainty of IPO firms and post-IPO market performance is well documented in the extant empirical literature, both within the context of developed and emerging markets. The present study is the first to investigate the impact of ex-ante uncertainty, as proxied by various financial ratios and other information reported in the prospectuses, on the short-run performance of Indonesian IPO firms using a sample of 71 IPOs over the sample period 2000 through 2008. Resultsreported in the present study indicate the presence of a high average market-adjusted first-day IPO return, about 53%, in Indonesia. Furthermore, these strong initial IPO returns in Indonesia are reported to be positively related to the proxy of risk of financial distress but negatively related to proxies of past profitability and the degree of establishment of the issuing firms. The empirical evidence documented in the present study conforms to a priori expectations and are consistent with the empirical evidence reported for other developed and emerging markets. The results reported in this study should be comforting to general investors and regulators given the long-standing perception of the poor quality of accounting information in Indonesia.

This paper discusses the corporate governance experience in Sri Lanka with a brief analysis of the historical growth of the corporate sector and salient features of the recent developments. It finds that the regulatory framework has increased simultaneously with the growth of the corporate sector. There is every potential now to witness a rapid growth of the economy with the end of the three decades of civil war, which has damaged the economy, and the social and political stability of the country. This paper argues that the corporate sector has matured enough to have its own self-regulations but the need to pay respect for the regulators and the need to free them from undue interferences by the politicians and also the need to make available adequate resources for them to be effective and efficient.

The aim of this study is to examine the impact of board characteristics and firm performance. Specifically we test the effects of board meeting, board independence, board size and directors accounting expertise on firm accounting performance. The paper uses both financial and non-financial data from annual reports of the 700 public listed firms in Malaysia for the year 2009. The result shows that board independence does not affect firm performance, whilst board size and board accounting/financial expertise are positively associated with firm performance. Board diligence in terms of board meetings is found to have an adverse effect on firm performance. These findings provide some implication for future research on the effectiveness of board directors on firm performance.

Purpose-This study aims to examine the control of corporate governance towards firm risks for a sample of Indonesian firms in agriculture, mining and property industries. This study highlights the impact of four indicators of internal mechanism of corporate governance, i.e. board size, board independence, board gender and board ownership, on three measurements of firm risks, i.e. total risk, asset return risk and idiosyncratic risk. Design/methodology/approach-Panel data analysis is conducted using a sample of 62 companies of agriculture, mining and property industries listed in Indonesia Stock Exchange from 2013 to 2017. Pooled ordinary least square with hetero-corrected is the statistical approach conducted to test the hypotheses. Findings-The result indicates that board size and board gender insignificantly influence firm risks. While board independence gives varied impacts towards firm risks, it gives positive influence towards total asset return risk, insignificant towards idiosyncratic risk and negative towards total risk. Other interesting results are found in board ownership that has insignificant influence on asset return risk and negative influence on idiosyncratic and total risk. Research limitations/implications-Firms should incorporate corporate governance, especially the impactful roles of board independence and board ownership as they serve as tools in reducing firm risk. Moreover, investors may have a better understanding of corporate governance and factors that are influencing firm risks. Therefore, this study can assist them to make the right investment decision. Originality/value-This study is notably the first to use comprehensively three measurements of firm risks in Indonesia. Risks can come from internal and external, thus the company should understand the various types of risks facing the company. Total risk measures both the internal and external risks, while asset return risk gives another perspective using overall market perception about the equity and assets of the company. Finally, this study also measures internal risk, which is the only risk that can be controlled and minimised by the board of the company.

This study aims to identify signalling theory and market feedback theory as asymmetric information proxies in Indonesia's capital market to analyse the relationship between IPO and FiSEO using OLS and quantile regressions approach. The authors conducted this study based on the idea that it is more meaningful and relevant to investigate the determinant of the speed of FiSEO at different distribution points rather than covering the overall distribution. OLS and quantile regression analysis was applied to 128 samples of IPO companies in IDX during the period 1990-2013. The results show that signalling theory can explain the speed of conducting FiSEO in the Indonesian Stock Exchange (IDX). Testing with quantile regression explains that underpricing is only able to explain the implementation of FiSEO, which happened not long after the IPO time (that is up to a period of 3.26 years or Q50). Age as a life cycle proxy is also able to explain the speed of implementing FiSEO.

Lack of vigilant oversight functions by the board of directors could be said to be the cause of corporate accounting improprieties. This study set out to determine the extent at which board size and structure affect corporate financial performance; determine the extent to which directors' stockholding affects corporate financial performance; and investigate the relationship between CEO duality and corporate performance. The study should be useful to investors, industry regulators and related professional bodies. Study used stratified random sampling technique to select samples from different sectors of the economy. Pearson correlation analysis and the linear multiple regression were used to study the multi co-linearity among the variables. Analysis of variance (ANOVA) was used to show which variables are dependent. Empirical findings show that institutions should embrace separation of the position of the chairman to the board and that of the chief executive officer. Further analysis shows that there exists a relationship between board size and performance; and that there is no effect of directors' stockholding on firm performance.