Board composition

It is imperative for corporations to be cognizance of all its stakeholders; within or without. Corporate governance has championed so many courses in terms of the management of these stakeholders by developing and reviewing codes in other to ensure their success. Balancing good stakeholders’ interest and embracing good corporate practices are the prerequisite for attracting the much-needed foreign investment inflows. This is the responsibility of the board. So many have argued about how the board should be composed or structured in terms of size, composition, shareholding, gender and so on. This study has successfully discussed and analyzed the impact of board composition and structure on corporate financial performance in Nigeria.

STRACT The study examined corporate governance and performance of Deposit Money Banks in Nigeria. Data used for this study were secondary data collected from the audited financial statements of 10 Deposit Money Banks listed on the Nigerian Stock Exchange (NSE) for ten years, spanning from 2008 and 2017. Descriptive analysis conducted in the study includes mean analysis, standard deviation analysis, minimum and maximum analysis. This was followed by correlation analysis, panel estimations including Pooled Ordinary Least Square (OLS), fixed effect and random effect estimation, alongside post estimation tests such as restricted F-test, Hausman test, Wald test of heterogeneity, Wooldridge autocorrelation test and Pesaran test of crosssectional dependence. Result revealed that board size exerts a negative and significant effect on the performance of Deposit Money Banks in Nigeria to the tune of - 0.8462=(p=0.009<0.05),board composition exerts a negative and significant effect on return on assets of Deposit Money Banks in Nigeria to the tune of -2.3177(p=0.001<0.05),
board audit committee has a positive but insignificant effect on return on assets to the tune of 1.3748(p=0.515>0.05),sitive but insignificant effect on return on assets to the tune of 1.3748(p=0.515>0.05), Chief Executive officer (CEO) duality has a positive but insignificant effect on the performance of on return on assets of Deposit Money Banks in Nigeria to the tune 2.4951(p=0.227>0.05)and that gender diversity exerts a positive but insignificant effect on the performance of Deposit Money Banks in Nigeria to the tune of 5.1647(p=0.685>0.05)It is therefore established that corporate governance exerts a significant effect on the performance of Deposit Money Banks in Nigeria.

Abstract
Purpose – This study aims to understand the antecedents of export performance at the firm level.
Building on agency theory but taking into account emerging market settings and institutional
differences, the authors investigate how the board composition determines the export competitiveness
of the firms operating in an emerging country from the point of view of corporate governance
mechanisms.
Design/methodology/approach – Using data from 221 exporting firms for four years (2007-2010),
the authors find that there is a significantly positive relationship between board size and all measures
of export performance, while a higher presence of outside directors on the board is negatively associated
with export performance, consistently with expectations. The separation of chairman of board of
directors and chief executive officer (CEO) positions has significantly positive impact on export
performance. On the other hand, the authors find no support for the position that inside director
professional representation neither reduce nor increase all measures of export performance of firms. In
other words, the convergence with Western practices and consistently with agency theory’s claims is
evident for both board size and CEO duality. However, the effects of inside professional and outside
directors are no consistent with agency theorists’ expectations.
Findings – Using data from 221 exporting firms for four years (2007-2010), the authors find that there
is a significantly positive relationship between board size and all measures of export performance, while
a higher presence of outside directors on the board is a negatively associated with export performance,
consistently with expectations. The separation of chairman of board of directors and CEO positions has
significantly positive impact on export performance. On the other hand, the authors find no support for
the position that inside director professional representation neither reduce nor increase all measures of
export performance of firms. In other words, the convergence with Western practices and consistently
with agency theory’s claims is evident for both board size and CEO duality. However, the effects of
inside professional and outside directors are no consistent with agency theorists’ expectations.
Research limitations/implications – Export performance is one of the most widely researched
areas within international marketing research but least reached topic of management. However,
exporting continues to be an important mode of internationalization for multinational companies, especially operating an emerging economy. This study is one of the first studies on the impact of
governance factors such as board structure on only export performance rather than overall (firm)
performance in light of international management. In other words, the study of the determinants of
exports in the context of an emerging economy is an important contribution to the literature, given that
our understanding of how the board composition determines the export competitiveness from the point
of view of firms operating in an emerging country such as Turkey. Moreover, this research investigates
this relationship at objective export performance dimensions using primary data set from listed and
non-listed export firms.
Practical implications – The current study offered in-depth information to multinational companies
that aim to gain a competitive exporting advantage in Turkey. Further, the results of this study give
managers an opportunity to see the reasons behind the success of the exporting firms from the point of
view of corporate governance mechanism.
Originality/value – In this paper, the authors contribute to this recent stream of research providing
evidence on the effects of governance mechanism on the export performance from the point of view of
emerging countries. Building on agency theory but taking into account emerging market settings and
institutional differences, and international management, the authors provide a new framework that
models the linkages between board composition and export performance. This work helps us to gain a
deeper understanding of how board dynamics contribute to the internalization of firms. Research in this
area has been sparse, although some studies have linked governance with export intensity. In this effort,
the authors differentiate from previous studies in several ways.
Keywords Internationalization, Export performance, Board composition, Board size, CEO duality
Paper type Research paper

We test whether corporate governance mechanisms promoted by best practice codes are effective in constraining earnings manipulation for a Spanish sample of quoted companies during the period 1999–2001. In particular, we analyse the association between earnings management and two key aspects of corporate governance: board composition and the existence of board monitoring committees. Our results show that board composition significantly determines earnings manipulation practices. However, the main role in constraining such practices is not played by independent directors, as UK and US based research suggests, but by institutional directors. No correlation is found between the existence of an independent audit committee and earnings management measures. Finally, the existence and composition of a nomination committee affects the role of independent directors in constraining earnings manipulation.

Özet Bu araştırmanın amacı, dışarıya yatırım yapan işletmelerin, yönetim kurulu yapılarının performans üzerindeki direkt etkisinin yanı sıra, uluslararası çeşitlenme stratejileri üzerinden ortaya çıkabilecek endirekt etkisini ortaya koymak ve söz konusu olabilecek böyle bir endirekt etkinin, ana ülke ve yatırım yapılan ev sahibi ülkeler arasındaki kurumsal mesafe tarafından biçimlenip biçimlenmeyeceğini test etmektir. Bu ilişkilerin test edilmesi için moderated mediation analiz modeli kullanılmıştır. Borsa İstanbul‟da koteli 83 firmanın 2011 yılı verileri kullanılarak yürütülen analiz bulguları, yönetim kurulu büyüklüğünün, finansal performans üzerinde anlamlı ve pozitif yönlü bir etkisinin olduğunu ve uluslararası çeşitlenme düzeyinin bu ilişkide önleyici (supression) bir mediator etkisinin var olduğunu ortaya koymuştur. Kurumsal mesafenin elde edilen endirekt etki üzerindeki moderator etkisi ise istatistiksel olarak anlamlı değildir. Anahtar Kelimeler: Yönetim Kurulu Yapısı, Finansal Performans, Uluslararası Çeşitlenme, Kurumsal Mesafe

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.

This paper reexamines the effect of board composition and board size on Tobin’s Q. We find that Tobin’s Q increases in board size for firms that have greater advising requirements, such as diversified firms and high-debt firms. Also, Tobin’s Q increases with fraction insiders in firms where the firm-specific knowledge of insiders is relatively more important, such as R&D intensive firms. Overall, our results challenge the traditional notion that only small boards with high fraction of outsiders are value-enhancing.

Environmental problems have become major headlines due to the negative effects they bring to the stability of the ecosystem. Thus, the increased awareness of social responsibility or, specifically, environmental concern is now a challenge facing the corporate world. Hence this study tests whether board size and board composition have any association with the level of firms’ corporate environmental disclosure in annual reports. To achieve the objective of this study, a total of 40 listed firms on the floor of the Nigerian stock exchange market were used. Also, the study critically developed and utilized the Kinder Lydenberg Domini (KLD rating scheme to analyze the level of corporate environmental disclosure made by firms in their annual reports for the period 2006- 2010. In addition, the simple regression analysis was used to test the research propositions as stated in the study. However, empirical findings from the study reveal that while board size has a significant negative relati...

PurposeThe effect of corporate governance on firm performance has long been of great interest to financiers, economists, behavioural scientists, legal practitioners and business operators. Yet there is no consensus over what constitutes an effective corporate governance mechanism that induces agents or managers to consistently act in the interest of share value optimisation. The purpose of this study is to develop a model to resolve an on‐going issue in financial economics: how can CEOs be effectively monitored by the board of directors?Design/methodology/approachA survey of the literature on corporate governance and the relationship between board composition and financial performance leads to the development of the proposed model, which is based on a framework which takes into account the probability of success representing a CEO&#39;s ability, and the active monitoring function (which is represented by the numbers of control visits) carried‐out by the directors.FindingsThe design ...

Manuscript Type: EmpiricalResearch Question/Issue: This paper investigates the relationship between internal governance structures and financial performance of Indian companies. The effectiveness of boards of directors, including board composition, board size, and aspects of board leadership including duality and board busyness are addressed in the Indian context using two theories of corporate governance: agency theory and resource dependency theory.Research Findings/Insights: The study used a sample of top Indian companies taking into account the endogeneity of the relationships among corporate governance, corporate performance, and corporate capital structure. The study provides some support for aspects of agency theory as a greater proportion of outside directors on boards were associated with improved firm performance. The notion of separating leadership roles in a manner consistent with agency theory was not supported. For instance, the notion that powerful CEOs (duality role, CEO being the promoter, and CEO being the only board manager) have a detrimental effect on performance was not supported. There was some support for resource dependency theory. The findings suggest that larger board size has a positive impact on performance thus supporting the view that greater exposure to the external environment improves access to various resources and thus positively impacts on performance. The study however failed to support the resource dependency theory in terms of the association between frequency of board meetings and performance. Similarly the results showed that outside directors with multiple appointments appeared to have a negative effect on performance, suggesting that “busyness” did not add value in terms of networks and enhancement of resource accessibility.Theoretical/Academic Implications: The two theories of corporate governance, namely agency and resource dependence theory, were each only partially supported, by the findings of this study. The findings add further to the view that no single theory explains the nexus between corporate governance and performance.Practitioner/Policy Implications: This study demonstrates that corporate governance measures utilized in developed economies related to boards of directors have some synergies and relevance to emerging economies, such as India. However, the nature of business structures in India, for example the large number of family businesses, may limit the generalizability of the findings and signals the need for further investigation of these businesses. The evidence related to multiple appointments of directors suggests that there may be support for restricting the number of directorships held by any one individual in emerging economies, given that the “busyness” of directors was negatively associated with firm performance.

We use a sample of large international commercial banks to test hypotheses on the dual role of boards of directors. We use a suitable econometric model (two step system estimator) to solve the well-known endogeneity problem in corporate governance literature, and demonstrate the empirical and theoretical superiority of system estimator over OLS and within estimators. We find an inverted U-shaped relation between bank performance and board size, and between the proportion of non-executive directors and performance. Our results show that bank board composition and size are related to directors’ ability to monitor and advise management, and that larger and not excessively independent boards might prove more efficient in monitoring and advising functions, and create more value. All of these relations hold after we control for the measure of performance, the weight of the banking industry in each country, bank ownership, and regulatory and institutional differences.

Earning manipulation has been a normal transaction among the global businesses, in which business organization sees it as beneficial, thereby turning black eyes to its negative impact on the general economy. This study aimed at examining the impact of board size, Board composition and dividend policy on real earnings management in the listed Jordanian industries. 8 years data (2010 to 2018) was extracted from the audited financial reports of the selected firms. Data was analyzed using Structural Model via AMOS version 26 and SPSS version 21. The findings revealed a positive and significant effect between board size, board composition and real earning management at p-value<0.05 and 0.001 (two-tailed) respectively. While negative of dividend policy on REM was recorded at p-value>0.05 (two-tailed). This study has immensely contributed towards bridging the gap in the existing knowledge as it documented a new finding. The benefits of these findings cross over the managers, shareholders, board of directors, investors, the Jordanian government and all other relevant institute for the buildup of the healthiest industrial sector and better economy.

Purpose-The purpose of this study is to examine dividend policies in an emerging capital market, in a country undergoing a transitional period. Design/methodology/approach-Using pooled cross-sectional observations from the top 50 listed Egyptian firms between 2003 and 2005, this study examines the effect of board of directors' composition and ownership structure on dividend policies in Egypt. Findings-It is found that there is a significant positive association between institutional ownership and firm performance, and both dividend decision and payout ratio. The results confirm that firms with a higher return on equity and a higher institutional ownership distribute higher levels of dividend. No significant association was found between board composition and dividend decisions or ratios. Originality/value-This study provides additional evidence of the applicability of the signalling model in the emerging market of Egypt. It was found that despite the high institutional ownership and the closely held nature of the firms, which imply lower agency costs, the payment of higher dividend was considered necessary to attract capital during this transitional period.

PurposeThe effect of corporate governance on firm performance has long been of great interest to financiers, economists, behavioural scientists, legal practitioners and business operators. Yet there is no consensus over what constitutes an effective corporate governance mechanism that induces agents or managers to consistently act in the interest of share value optimisation. The purpose of this study is to develop a model to resolve an on‐going issue in financial economics: how can CEOs be effectively monitored by the board of directors?Design/methodology/approachA survey of the literature on corporate governance and the relationship between board composition and financial performance leads to the development of the proposed model, which is based on a framework which takes into account the probability of success representing a CEO&#39;s ability, and the active monitoring function (which is represented by the numbers of control visits) carried‐out by the directors.FindingsThe design ...

In the first half of the twentieth century, the UK capital markets were marked by an absence of investor protection; by the end of the century, there was more extensive protection there than virtually anywhere else in the world. The UK therefore provides an exceptional laboratory for evaluating how regulation affects the development of securities markets and corporations. We investigate this question by tracing the ownership and board composition of firms incorporated around 1900 over the subsequent 100 years and comparing the pattern of ownership and control with a sample incorporated around 1960. We find that at the beginning of the century there were active securities markets, firms were able to raise substantial outside equity finance, and there was rapid dispersion of ownership even in the absence of investor protection. The introduction of investor protection in the second half of the century was not associated with greater dispersion of ownership but with more trading in shar...

This paper investigates the empirical determinants of corporate cash holdings for a sample of UK firms. We focus on the importance of managerial ownership among other corporate governance characteristics including board structure and ultimate controllers of companies. We ...

The paper examined board characteristics and its impact on the performance of non-financial listed firms in Ghana. Data covering 11 year period (1990-2001) was used and analysis conducted within the panel data framework. The study shows that most Ghanaian firms adopt the two-tier board structure and are largely non-independent. The regression results, though relatively mixed, confirm other studies and show that there should be a clear separation of the two critical positions of CEO and board chairman in order to reduce agency cost for enhanced firm performance.

The study examined corporate governance and performance of Deposit Money Banks in Nigeria. Data used for this study were secondary data collected from the audited financial statements of 10 Deposit Money Banks listed on the Nigerian Stock Exchange (NSE) for ten years, spanning from 2008 and 2017. Descriptive analysis conducted in the study includes mean analysis, standard deviation analysis, minimum and maximum analysis. This was followed by correlation analysis, panel estimations including Pooled Ordinary Least Square (OLS), fixed effect and random effect estimation, alongside post estimation tests such as restricted F-test, Hausman test, Wald test of heterogeneity, Wooldridge autocorrelation test and Pesaran test of crosssectional dependence. Result revealed that board size exerts a negative and significant effect on the performance of Deposit Money Banks in Nigeria to the tune of - 0.8462(p=0.0090.05), Chief Executive officer (CEO) duality has a positive but insignificant effect on the performance of on return on assets of Deposit Money Banks in Nigeria to the tune 2.4951(p=0.227>0.05) and that gender diversity exerts a positive but insignificant effect on the performance of Deposit Money Banks in Nigeria to the tune of 5.1647(p=0.685>0.05). It is therefore established that corporate governance exerts a significant effect on the performance of Deposit Money Banks in Nigeria. Jel Code: M14, M42, M21

We begin this report with a look at the Survey Universe theatres — the 154 theatres included in the 2001 investigation. This year&#39;s survey asks the same questions as that of 1998, so that we can begin to look at changes in board composition, structure, development, policies, relations with staff and committee involvement over time. We seek to discover more