Board Characteristics and Working Capital Management Linkage

Purpose: Low market value which recently led to delisting of some companies from the Nigerian Exchange Group can be linked to companies’ ownership structure, board structure or financial structure. This study examined the effect of board characteristics on the market value of listed consumer goods firms in Nigeria, focusing on board size, composition, independence, gender diversity. foreign membership, turnover, and staggered board structure. The study also controlled for the effect of firm size in determining the relationship between board characteristics and market value. Methodology: An ex-post facto research design was adopted because the study heavily relied on the secondary data extracted from the annual reports of twenty-one (21) listed consumer goods firms in Nigeria, from which sixteen (16) firms were selected as the sample covering the period of 2014-2023. The data were analyzed using the fixed effects panel regression model, chosen based on the Hausman test. Findings: The findings of the study revealed that the board turnover and staggered board have a positive and statistically insignificant effect on the market value of listed consumer goods firms in Nigeria, while the board composition, board independence, board gender, and foreign board membership have a negative and statistically insignificant effect on the market value of listed consumer goods firms in Nigeria. The board size and firm size were found have a negative and statistically significant effect on the market value of listed consumer goods firms in Nigeria. It was also found that firm size controls the relationship between the board characteristics and the market value of listed consumer goods firms in Nigeria. Based on the findings, the study concluded that board characteristics can be used as a predictor of market value of listed consumer goods firms in Nigeria Unique Contribution to Theory, Practice and Policy: The study recommended that firms in the consumer goods sector should maintain an optimum board size and prioritize board quality over quantity. Companies should consider adopting a staggered board structure in their articles of association since it appears to have a positive effect on market value. Furthermore, independent directors' activities should be closely monitored to ensure they are not compromised. The competence. experience, and contributions of women and foreign directors should be periodically evaluated to identify and bridge any resource or knowledge gaps. Finally, future research should employ larger samples and longer timeframes to further explore the dynamic relationship between board turnover and firm market value.

This study examines the relationship between board structure and performance of firms listed at the Nairobi Securities Exchange. The study is anchored on agency theory, resource dependency theory, transaction cost theory, political theory and a census approach. A population of the study comprising sixty five companies listed at the Nairobi Securities Exchange between 2002 and 2016 were used. Data was extracted from annual reports of listed firms. This study employed longitudinal descriptive research design to determine the relationship. Panel data regression analysis was conducted using the random effects model. The results revealed that gender diversity and occupational expertise had significant effect on Return on Assets, while board independence and board age had significant effect on Tobin’s Q of listed firms in Kenya. On the other hand, board size had an insignificant effect on both Return on Assets and Tobin’s Q. The overall effect of board structure on Returns on Assets and Tobin’s Q was significant. The study concluded that various board structure mechanisms except board size have significant effect on performance of listed firms in Kenya, and the overall board structure had significant effect on performance of listed firms. The study recommended that management should incorporate board structure mechanisms to enhance performance of firms and regulatory authorities should review the current board structure variables to make them more relevant to improve performance of listed firms in Kenya.

Effective corporate governance practices contribute significantly to various aspects of an organization as a strategic direction. This study examines the impact of corporate governance practices on corporate performance. The top fifty companies from five industries listed in the Colombo Stock Exchange were selected as the sample. Secondary data was extracted from financial statements covering a five year period from 2014 to 2019. Six corporate governance practices; financial acumen, board independence, board size, CEO duality, board committees, and board gender diversity were tested against corporate performance indicators: return on assets, return on equity, and Tobin’s Q. Results of multivariate analysis indicated that board size and committees positively impact on corporate performance, while other variables do not provide any significance. The findings of the study will fill some gaps in extant literature in the corporate governance field. It may also facilitate significant policy implications relating to corporate governance by strengthening existing rules and regulations in the institutional framework.

Board Characteristics, Ownership Structure and Firm Value of Listed Petroleum Companies in Nigeria

Objective: How to increase firm performance? This paper seeks to answer this question by analyzing the effect of some variables, especially board size and board independence with firm performance. In this regard, the current paper uses non-financial firms listed on Borsa Istanbul stock change between the period of 2013 and 2015.
 Methodology: On the other hand, the current research used random sampling of abovementioned firms which was listed on BIST. Correspondingly, to address the association among board characteristics (e.g. interlocking directors, size, and independence) and firm performance the present research adopted an agency theory as well as resource dependency theory. Plus, utilizing the descriptive statistics, relationship matrix tests, and linear multiple regression as the principal statistical tests via (STATA V.14 and SPSS V25).
 Findings: As a consequent, the current paper pointed out a various conclusion, most significant one shows that there is a positive association among the (board size, interlocking directors, board independence, and firm performance).
 Implications: Lastly, the current research suggested for future studies might address bigger sample, wider time frame, and further board of director’s characteristics for instant, age and nationality.

EUGENE FAMA and Michael Jensen's treatment of the "Separation of Ownership and Control" is both insightful and informative. It deepens our understanding of corporate control, and the analysis of residual claimants usefully extends the economics of internal organization to include partnerships, mutuals, nonprofits, and the like. The basic argument is this: specialized governance structures arise in response to the efficiency needs of each type of organization. This is an important argument and one with which I broadly concur. They couple this, however, with a strong suggestion that these structures have reached a high degree of refinement-on which account there is not now, if indeed there ever has been, an organization control problem with which scholars and others are legitimately concerned. On this point I have grave doubts. My discussion of the paper addresses three issues: What is the relation, if any, of the hierarchical organization of the firm to economic performance? What relation, if any, does residual claimant status have to the composition and character of the board of directors? And is there now or has there ever been a corporate control problem? I deal with each of these issues in order.

Manufacturing, construction, and allied firms at the Nairobi Securities Exchange (NSE) faced significant challenges, as evidenced by a decline in market value over recent years. Despite effective corporate governance beneficial value in instilling the confidence of investors and enhancing the market value, empirical studies specifically focusing on the manufacturing, construction, and allied sector in Kenya were lacking. These sectors were important in the Big Four Agenda, specifically in affordable housing and manufacturing policies, with manufacturing expected to grow to 15% of GDP by 2030. Drawing from recent market data, it was evident that companies such as Unga Limited, Eveready, Mumias Sugar, Bamburi Cement, Crown Paints, and East African Portland experienced stagnation or decline in their firm value, highlighting the need for a comprehensive examination of corporate governance mechanisms within the sector. This study's main objective was to ascertain how internal corporate governance practices affected the selected firm value in the NSE. The specific objectives included examining the effect of board size, ownership structure, and board independence on firm value, determining the mediating effect of profitability and the moderating effect of foreign capital flows on the relationship between internal corporate governance mechanisms and firm value. The study variables were anchored on Agency Theory, Transaction Cost Theory, Stakeholder Theory, Knight's Theory of Profit, and Efficient Market Theory. The research opted for the explanatory design and collated panel data for 14 firms at the NSE covering the years 2014 to 2023. Data collection relied on secondary sources, primarily annual financial reports, to identify trends and patterns. Data analysis encompassed both descriptive and inferential techniques, including means, standard deviations, and panel regression analysis using the STATA software. Diagnostic tests were conducted to validate the model and address potential issues such as multicollinearity, normality, stationarity, heteroscedasticity, and model specification. The study tested various hypotheses and found that board size positively affected firm value (p = 0.001 < 0.05, t = 3.41 > 6, β = 0.075), with the optimal size around nine members. Board independence was positively correlated with firm value (p = 0.006 < 0.05, t = 2.76 > 6, β = 0.008), emphasizing the importance of having independent directors. The study also found that ownership structure, while balanced, did not significantly influence firm value (p = 0.0287 > 0.05, t = 1.12 < 1.96, β = 0.065), indicating other governance mechanisms may be more critical. The mediating variable profitability significantly mediated corporate governance and firm value association with a β =0.344, (p = 0.025 < 0.05). The moderating variable foreign capital inflow was found to be a positive and significant determinant of foreign capital inflow. It explained 10.002% variance of firm value with a Beta of 1.85831. Recommendations for corporate managers include optimizing board size, increasing board independence, and enhancing profitability strategies. Policymakers are advised to promote balanced ownership structures and foreign investment. Stakeholders should advocate for governance practices that align with these findings to ensure sustainable firm value.

In recent years, the issue of women's representation on corporate boards has gained considerable attention. The presence of women on boards is believed to enhance their effectiveness. This study aims to investigate whether the gender composition of corporate boards plays a crucial role in the financial performance of the manufacturing sector, which is a significant contributor to Indonesia's economic growth. Purposive sampling led to the selection of 85 companies that met the criteria, resulting in a total sample of 680 companies over an eight-year period. Gender diversity is assessed using the proportion of female directors, while financial performance is measured by Tobin's Q. Additionally, six control variables are included in this study, namely the board of commissioners, board size, firm size, leverage, age, and market value. The analytical data calculations were conducted using STATA 13 software to ensure more precise results. The results from the regression tests reveal a significant positive impact of gender diversity on financial performance, both with and without the control variables. Furthermore, these findings provide support for two prominent theories: agency theory and resource dependence theory.

In the recent years, corporate governance has garnered significant attention, evolving into a notable topic for discussion. Over the past decade, the behaviour and conduct of boards of directors have taken an extraordinary dimension. Moreover, the unpredicted and unprecedented outbreak of the COVID-19 pandemic underscored the significance and the role of the business leaders, especially of the boards of directors. The purpose of this research is to study the presence and influence of various board characteristics on the performance of private companies in Kosovo. The research explores the relationship between board presence, board size, board independence, board composition, gender diversity, and the performance of these private companies in Kosovo. The research uses a quantitative approach, surveying large and medium-sized companies. A sample of 61 companies was selected to examine the correlation between board characteristics and company performance indicators such as Return on Equity (ROE), sales and profit. The findings show that 70% of the companies in the study have a board of directors. The results indicate that the presence of a board, as a proxy for adopting corporate governance practices, has a positive and significant impact on company performance. However, these boards often lack independence, being largely dominated by family members. Furthermore, gender diversity is limited, with women occupying only 17% of the total board seats. This research is expected to serve as a valuable guide and practical reference for policymakers, company owners, boards of directors, and top management teams, to comprehensively assess and facilitate improvement of the understanding of corporate governance in Kosovo.

PurposeThe purpose of this paper is to investigate the impact of board composition on the level of corporate internet reporting (CIR) practices.Design/methodology/approachThis study uses content analysis to examine the CIR practices of 140 Indian companies selected from the Bombay Stock Exchange 200 index for the year 2015. CIR was measured on a comprehensive internet disclosure index of 136 items capturing both content and presentation dimensions. Regression analysis was used to explore the impact of board composition (board size, board independence, frequency of board meetings, CEO duality and family members on the board) and audit committee characteristics on CIR while controlling the impact of variables firm size, leverage, profitability and industry type.FindingsThe findings reveal that larger boards, boards with less family members and audit committees that meet more frequently are more likely to engage in CIR practices. In addition, larger firms and firms that make less use of debt tend to disclose more information on their websites.Research limitations/implicationsThe focus of the study has been on one aspect of corporate governance mechanisms i.e. board characteristics. Future studies can explore the impact of ownership structure on CIR practices.Originality/valueThis study extends the prior CIR research by demonstrating the effectiveness of corporate governance mechanisms in particular board characteristics in adopting internet reporting practices for Indian companies. The examination of the relationship between corporate reporting on the internet and corporate governance aids regulators in evaluating and enhancing the effectiveness of the boards.

The study examined the effect of board characteristics on the corporate reserve of listed service firms in Nigeria. The specific objective was to examine the effect of board gender diversity, board diligence, board independence and board size on the earnings retention rate of listed service firms in Nigeria. Ex-post facto research design was adopted in the study. The population comprised all the 21 listed service firms in Nigeria. Purposive sampling was deployed in selecting the sample size of 16 firms. Secondary data were collected from the firms’ annual reports over an eleven year period from 2014-2024. Descriptive analysis was carried out on the data after which tests of cross-sectional and heteroskedasticity were conducted. Panel estimated generalised least square regression was used to test the hypotheses. The findings revealed that: board gender diversity has a positive and significant effect on earnings retention rate among listed service firms in Nigeria (β = 35.5009; p = 0.0014); board diligence has a positive and significant effect on earnings retention rate among listed service firms in Nigeria (β = 1.4354; p = 0.0162); board independence has a negative but non-significant effect on earnings retention rate among listed service firms in Nigeria (β = –0.0264; p = 0.9966); board size has a negative and insignificant effect on earnings retention rate among listed service firms in Nigeria (β = –0.1175; p = 0.8411). In conclusion, while traits such as gender inclusiveness and diligence appear to strengthen internal capital accumulation, the non-significant outcomes associated with board size and independence suggest that formal structures alone are not sufficient. The study recommends that listed service firms in Nigeria need to institutionalize gender-inclusive board policies by setting internal targets or quotas for female representation. In addition, companies should focus on recruiting competent and experienced female professionals, not just for compliance, but to strategically improve long-term financial sustainability through prudent profit retention.

PurposeThis study aims to investigate the impact of ownership structure and board characteristics on dividend policy in the listed Turkish firms between 2013 and 2019.Design/methodology/approachThis study uses the probability of paying dividends, dividend payout ratio and dividend yield measures. The suitable regression procedures (logit, probit and Tobit models) are used to examine the research hypotheses by focusing on a panel data set drawn from the Borsa Istanbul (BIST) 100 index, excluding financial and utility firms.FindingsThe empirical findings indicate that institutional and concentrated ownerships are significant and positively associated with dividend payouts, whereas family ownership does not influence dividend policy. On the other end, board size is positive, while chief executive officer duality is negatively related to dividend policy. Additionally, the female directors and board independence are insignificant in influencing firms to pay high dividends.Research limitations/implicationsFuture researchers can validate this paper’s findings by considering the stock dividends as well. Additionally, future researchers may investigate the relationship between these constructs by extending the sample size of firms listed on BIST or in other emerging markets.Practical implicationsThis study’s findings may serve policymakers, regulators, investors and academic researchers to get valuable guidance from relevant literature. The Turkish firms may improve dividend policy by implementing the regulatory framework introduced by the Capital Markets Law in 2012 for effective monitoring and protecting the minority shareholders’ rights. The controlling shareholders may alleviate principal-principal conflicts by ensuring the independence of directors and increasing the number of female directors according to the critical mass of at least 30% of board members.Originality/valueThis study contributes to agency theory and signaling theory by considering ownership structure and board attributes among Turkish firms related to dividend payments.

Purpose This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model. Design/methodology/approach This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors. Findings The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures. Research limitations/implications This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia. Originality/value To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.

The purpose of the study was to ascertain the moderating and mediating effect of gender diversity and governance style a piece on the relationship between board characteristics and financial performance. The present study employed the quantitative research approach with an exploratory descriptive research design. Exactly 600 self-administered structured questionnaires were distributed to the eligible respondents to complete between May and June 2022. A response rate of 96 percent (n = 576) was obtained following the distribution of the questionnaire to eligible participants. We adopted the STATA software (version 18) to statistically analyze the primary data obtained in the present study. The partial least squares structural equation modelling (PLS-SEM) technique was used to analyze the data. The results identified governance style as a significant mediator in the relationship between board characteristics and financial performance. Gender diversity significantly influenced only the positive relationship between board independence and governance style. The study provides essential insights into the significance of considering and embracing the relevance of corporate governance dimensions such as board committee, board independence, and board diversity on financial performance, whilst appreciating the moderating and mediating contribution of gender diversity and governance style, respectively, on the board characteristics-financial performance relationship. To the researchers’ knowledge, this study is one of a kind that integrates gender diversity, knowledge management, and governance style into an examination of the effects of corporate governance on the financial performance of public institutions in a developing country’s higher educational context.

The study seeks to ascertain if there is any relationship between performance of state-owned enterprises (SOEs) and board characteristics. Three proxiesor characteristics of the board, including board independence, board gender diversity and board size as vices of corporate governance are used to find their effects on the performance. The performance of the sampled firm X was measured by ROA, an accounting-based measure. The study reviews literature on board characteristics linking it mainly to the Agency Theory underpinning the study. The quantitative research approach is used to find the relationship between independent and dependent variables with a case study as a design. The sample of the study was drawn from the selected organisation and its subsidiaries using stratified random sampling. The sample consists of members from directors and senior management. The data collected through questionnaires was entered into IBM SPSS software for analysis. SPSS, Pearson correlation analysis and multiple regression were conducted to examine the relationships between the variables under study. Both the correlation and regression results reveal a significant positive relationship between board independence, gender diversity and firm performance in Zimbabwean SOEs. On the contrary, a significant negative relationship was found between board size and firm performance. The study recommends establishing boards dominated by independent non-executive directors and embarking on gender streamlining to achieve improved performance. Similar studies that could be useful in covering a large number of companies are recommended.