Company financial performance: Does board size matter? Case of the EUROSTOXX50 index

Fernández, María Mercedes Rodríguez

doi:10.5295/cdg.140474mr

Cited by 15 publications

(11 citation statements)

References 61 publications

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“…The results of the study supported the hypothesis (H2) of the study by reporting a negative association with FP as suggested by the AT (Al‐Matari, Kaid Al‐Swidi, Hanim, Fadzil, & Al‐Matari, 2012) that stated that large BS contributes negatively to FP due to communication problem and difficult to make decisions and agreement on the same opinion. The results of the study are similar to the findings of Rahim (2015), Rodríguez‐Fernández (2015), and Yusoff, Mohammed, and Lame (2015).…”

Section: Resultssupporting

confidence: 89%

“…Some of the scholars found a negative relationship between internal CG mechanisms such as NEDs, BS, and CEOD, while some researcher reported a positive impact of internal CG mechanisms on FP around the world. For instance, Alhaji, Wan Yusoff, and Alkali (2012), Rahim (2015), and Rodríguez‐Fernández (2015) reported the negative effect of BS on corporate performance. On the contrary, Gull, Saeed, and Abid (2013) and Javed, Saeed, Lodhi, Uz, and Malik (2013) reported the positive association between BS and FP.…”

Section: Governance Mechanism and Hypothesis Developmentmentioning

confidence: 99%

“…Al‐Malkawi and Pillai (2012) argued that BODs are valuable assets that possess the resources that firms can use in a critical situation, while, conversely, AT suggested the negative impact of larger BS on corporate performance (Al‐Malkawi & Pillai, 2012). A number of studies such as Rahim (2015), Rodríguez‐Fernández (2015), Shukeri, Shin, and Shaari (2012), and Yusoff, Mohammed, and Lame (2015) reported the negative effect of large BOD on FP based on the argument that it could become a reason for the agency cost, the delay in decision‐making, the lack of communication, and an incompetent monitoring function on the board. A big issue was reported by the Gulf News (February 13, 2011) about the world's largest automaker Toyota Motor, which makes the big cut in the BODs from 27 to 17 after facing issues and problems regarding the call back of their cars from the market due to the failure to maintain the quality demanded (Al‐Malkawi & Pillai, 2012).…”

Section: Governance Mechanism and Hypothesis Developmentmentioning

confidence: 99%

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Dynamic relationship between corporate board structure and firm performance: Evidence from Malaysia

Khan

Aljabri²,

Saif

2019

Int. J Fin Econ

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Corporate governance is being acknowledged by almost all kinds of business communities and firms as an ultimate driver to improve the firm financial performance. This study examined the association between corporate board structure and corporate financial performance using a dynamic panel model. Principles of corporate governance deliver an explicit board structure for the purpose to facilitate the board members, which helps in making good decisions. The board of directors consists of the CEO, the chairman, the internal directors, and the external non‐executive directors to work for the shareholders. This study undertakes different corporate governance attributes including non‐executive directors, board size, and CEO duality and examines its effect on firm performance. The dynamic panel model is used, and preestimation and postestimation tests were conducted for the validity of the model. This study found a significant effect of board size, CEO duality, and non‐executive directors on firm performance. The findings show that most of the governance variables are endogenous by nature. Results are consistent with agency theory. This study provides the theoretical and empirical evidence and applies a superior model (dynamic panel model) to better explain the association between corporate board structure and corporate firm performance in listed firms.

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Section: Resultssupporting

confidence: 89%

Section: Governance Mechanism and Hypothesis Developmentmentioning

confidence: 99%

Section: Governance Mechanism and Hypothesis Developmentmentioning

confidence: 99%

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Dynamic relationship between corporate board structure and firm performance: Evidence from Malaysia

Khan

Aljabri²,

Saif

2019

Int. J Fin Econ

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“…Asset size is significant but negatively affects ROA. Fernandez (2014) in his article supported our result. He found in his study that there existed a strong and negative relation between firm size and financial performance.…”

Section: Panel Data Regression Analysis and Findingssupporting

confidence: 86%

Impacts of Corporate Governance on Firm Performance: Turkey Case with a Panel Data Analysis

Yilmaz¹,

Büyüklü²

2016

EJEF

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There has been increasing attention all over the world on corporate governance issues after experiencing some financial crises and corporation scandals. It is assumed that the investors search for emerging economies to diversify their investment portfolios and maximize their returns is considering corporate governance applications. Investors are also concerned about governance factors to minimize their risks. In this study, we examine the impact of corporate governance variables on firms" financial performance in Turkey. The relationship between ownership structures, board structures and financial performances are tested. Influence of corporate governance variables, board size, share of independent board members, foreign investors, leverage ratio on firms" financial performance "return on assets" are utilized on firms traded in Turkey"s stock exchange BIST 100. This research concludes that corporate governance variables influence firms" performances. Shares of independent board members and leverage have negative influences while foreign ownership has a positive influence on firms" financial performances.

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“…This database contains both annual accounts and management details of about 330,000 public and private companies in 41 European countries, including the UK. The reliability of AMADEUS data is evident from its extensive use by other researchers (see, Ahmed, 2015;Rodriguez-Fernandez, 2015). The sample was collected from the AIM because it is one of the few stock exchanges around the world established specifically for SMEs (Mendoza, 2007), and is by far the most successful second-tier market (Colombelli, 2010).…”

Section: Sample Selection and Datamentioning

confidence: 99%

How does directors’ remuneration affect SMEs’ performance?

Afrifa

Adesina

2018

RAF

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Purpose -The purpose of this paper is to explain empirically the relationship between the remuneration levels of a sample of listed Small and Medium Enterprises (SMEs) directors and firm performance. The paper also investigates whether deviations from the optimal directors' remuneration level reduce firm performance.Design/methodology/approach -The study uses a panel data regression analysis of 802 AIMlisted SMEs over an eight-year period (2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012).Findings -Using a non-linear approach, the results show that an optimum director's remuneration level exist which results from comparing the benefits and costs of director's remuneration. Hence, the paper does not only show how directors' remuneration level affects firm performance, it also extends the stream of knowledge by indicating how a deviation from the optimal point influences UK-listed SMEs performance. Moreover, the results show that the effect of directors' remuneration on firm performance is greater during financial crisis period.Originality/value -Compared with previous literature on directors' remuneration, this paper focuses on AIM-listed SMEs and our finding of a concave relationship between directors' remuneration level and performance of leads us to recommend that firms, especially SMEs should endeavour to determine the optimal level of directors' remuneration to maximise performance.

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Company financial performance: Does board size matter? Case of the EUROSTOXX50 index

Abstract: This study analyzes the relationship between board size and economic-financial performance in a sample

Cited by 15 publications

References 61 publications

Dynamic relationship between corporate board structure and firm performance: Evidence from Malaysia

Dynamic relationship between corporate board structure and firm performance: Evidence from Malaysia

Impacts of Corporate Governance on Firm Performance: Turkey Case with a Panel Data Analysis

How does directors’ remuneration affect SMEs’ performance?

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