PurposeThis study aims to examine the relationship between board composition (i.e. non‐executive directors, family directors, role duality and board size) and bank performance, using a sample of nine listed Kuwait banks over the 2006 to 2010 period.Design/methodology/approachThe study uses ordinary least squares (OLS) and two‐stage‐least squares (2SLS) to test such a relationship and to address endogeneity in explanatory variables.FindingsThe results provide some evidence that board composition of banks relates to their performance. According to the OLS regression results, only board size and proportion of non‐executive directors negatively affect bank performance. Meanwhile, the 2SLS results indicate that role duality positively affects a bank's performance while board size affects a bank's performance negatively.Research limitations/implicationsAlthough the model has explained a significant part of the variation in performance, still unexplained is a material part that represents the “noise” of the model. Data availability limited the ability to study other aspects of corporate governance mechanisms such as number of audit committee members on board. The sample size is small; thus, in future research, the sample size could be increased by including a longer period of time or different countries such as members of the Gulf Cooperation Council (GCC) (Kuwait, Bahrain, Qatar, Oman, United Arab Emirates, and Saudi Arabia).Practical implicationsGiven the importance of effective boards in monitoring bank values, more actions and rules need to take place in Kuwait to improve the efficacy of boards in protecting shareholders and their interests in Kuwaiti banks. Regulators may mandate a corporate governance code or adopt the OECD corporate governance principles as a starting point in Kuwait. Kuwaiti companies may use the findings to make appropriate choices about board appointments and best governance to improve performance. Investors also may use the findings to understand Kuwaiti companies. Such findings may assist them to diversify their investment portfolios.Originality/valueThis study asserts to provide insights on the relationship between bank performance and board composition in Kuwait. The study extends prior research and investigates the roles of board of directors in banks in the context of an emerging market characterized by weak shareholder protection and highly concentrated ownership.

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This study investigates the link between Kuwait women serving as board directors and firms' performance in Kuwait as listed on the Kuwait Stock Exchange from 2009 to 2011. In order to investigate this relationship, an OLS regression analysis was used to interpret the impact of both the presence of Kuwaiti women on boards of directors and Kuwaiti women's presence at the head of boards of directors on firm performance. Overall, the study found that the presence of Kuwaiti women is not an effective mechanism for improving firm performance. This evidence provides insights for governments, regulators, investors, and academics in their efforts to analyze this impact and study the obstacles facing Kuwaiti women to working effectively as board members.

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