A Meta‐analysis of Board Leadership Structure and Financial Performance: are “two heads better than one”?

Rhoades, Dawna L.; Rechner, Paula L.; Sundaramurthy, Chamu

doi:10.1111/1467-8683.00258

Cited by 142 publications

(118 citation statements)

References 19 publications

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“…Using 25 Canadian firms from 1976 to 2000, Bozec (2005) reports that CEO duality has no impact on market valuation. This is consistent with the results of previous studies (Baliga et al, 1996;Brickley et al, 1997;Rhoades et al, 2001;Vafeas and Theodorou, 1998;Laing and Weir, 1999;Weir and Laing, 2000;Sanda et al, 2010), which suggest that CEO duality has no impact on market valuation.…”

Section: The Theoretical and Empirical Literature On Dbls And Market supporting

confidence: 93%

Does the South African stock market value an independent dual board leadership structure?

Ntim

2012

Econom. bus. letters

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We examine the crucial policy question of whether the South African (SA) stock market values a dual board leadership structure (DBLS) using a sample of 169 listed firms from 2002 to 2007. We find a significant positive link between DBLS and market valuation, but only in firms with independent chairpersons, implying that the market values firms with independent DBLS more highly. Our results are robust across a number of econometric models that control for different types of market valuation proxies and endogeneity problems. Our findings offer empirical support for agency theory, which suggests that independent DBLS increases the capacity of the board to effectively advise, monitor and discipline top management, and thereby improving market valuation.

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Section: The Theoretical and Empirical Literature On Dbls And Market supporting

confidence: 93%

Does the South African stock market value an independent dual board leadership structure?

Ntim

2012

Econom. bus. letters

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“…However, the results of the previous studies are inconsistent. Some of the previous studies found that better firm performance is related to good CG (Baysinger& Butler,1985;Brickley&James, 1987;Rechner& Dalton, 1991;Byrd &Hickman, 1992;Brickley et al, 1994;Rhoades et al, 2001;Coles &Jarrell, 2001;Haniffa&Hudaib, 2006) and some other studies found a negative relationship between CG and firm performance (Bathala&Rao, 1995;Kien, Suchard&Jason, 2004;Hutchinson, 2002;Ertugrul&Hegde;2004). Besides, some other studies could not find any significant relationship between CG and firm performance (Prevost et al 2002;Park &Shin, 2003;Singh &&Davidson, 2003).…”

Section: Problem Statementmentioning

confidence: 95%

Board Characteristics and Firm Performance: Case of Saudi Arabia

Ghabayen

2012

ijafr

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Corporate governance (CG) has received much attention in the current studies all over the world especially after many corporate scandals and the failures of some biggest firms around the world such as Commerce Bank (1991) Enron (2001), Adelphia (2002), and World Com (2002). The aim of this study is to examine the relationship between board mechanisms (audit committee size, audit committee composition, board size, and board composition) and firm performance (ROA) based on the annual reports of listed companies in the year 2011 of sample of non-financial firms in the Saudi Market (Tadawul). For the purpose of this study, data was collected from a sample of 102 non-financial listed companies. Furthermore, an analysis of regression analysis is utilized to examine the relationship between board characteristics and firm performance. The results of this study reveal that audit committee size, audit committee composition and board size have no effect on firm performance in the selected sample while board composition has a significant negative relationship with firm performance.

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“…The variables considered in this study (board size, board composition, duality, promoter shareholding) have been found to have some impact on the financial performance of a firm which has been measured based on return on assets, return on equity and Tobin's q in various research papers (Ibrahim & Samad, 2014;Kiel & Nicholson 2003;and Rhoades et al, 2001). However, the relevance of audit committee characteristics has not been investigated much.…”

Section: Literature Reviewmentioning

confidence: 99%

Audit Committee, Corporate Governance and Firm Performance: Empirical Evidence from India

Bansal¹,

Sharma²

2016

IJEF

125

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Considering the endorsement of Indian Companies Act (2013), the study examines the role of audit committee characteristics (independence and frequency of meetings) in addition with other components of corporate governance (duality, promoter shareholding, board composition, and board size) in improving firm performance. Fixed effect panel data regression was applied on 235 non-financial public limited companies listed in NSE 500. The time period considered was ten years (2004 to 2013). Return on Assets, Return on Equity, Tobin's q and Market Capitalization were used as proxy of firm performance. Results reveal significant positive association of board size and CEO-Chairman dual role with firm performance. However, findings did not reveal any additional effect of audit committee independence and its meeting frequency on the financial performance of Indian firms. Regulators and policy makers may reexamine the significance of greater independence of board and audit committee in context of firm performance.

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A Meta‐analysis of Board Leadership Structure and Financial Performance: are “two heads better than one”?

Cited by 142 publications

References 19 publications

Does the South African stock market value an independent dual board leadership structure?

Does the South African stock market value an independent dual board leadership structure?

Board Characteristics and Firm Performance: Case of Saudi Arabia

Audit Committee, Corporate Governance and Firm Performance: Empirical Evidence from India

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