Impact of corporate board size and board independence on stock returns volatility in Ghana

Doku, James Ntiamoah; Borowa, Haruna Abdul-Razak; Issah, Mohammed; Attah‐Botchwey, Edward

doi:10.1080/23311975.2023.2204597

Cited by 6 publications

(3 citation statements)

References 85 publications

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“…Haider and Fang (2016) find that while there is a negative relationship between board size and corporate risk taking in China, the economic impact of change in board size is much smaller than that in other developed markets. Doku et al (2023) find that board size is negatively associated with stock return volatility in listed firms in Ghana.…”

Section: Introductionmentioning

confidence: 79%

“…Bird et al (2018) document that board independence is associated with less variable firm performance. However, evidence from other countries, including China, Australia and Ghana, suggests the opposite (Doku et al, 2023;Tan and Liu, 2016;Zhang et al, 2018) [1]. Furthermore, the economic magnitude of these characteristics also differs across countries.…”

Section: Introductionmentioning

confidence: 99%

“…Younas et al (2019) show that an increase in the proportion of independent directors is associated with less corporate risk-taking in German firms and this effect is stronger in Germany than in the USA. Doku et al (2023) investigate the role of board independence on the volatility of stock returns of firms in Ghana. They find that board independence is positively associated with stock return volatility.…”

Section: Introductionmentioning

confidence: 99%

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Board structure, firm performance variability and national culture

Huang

2023

MEDAR

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Purpose The purpose of the study is to examine the relation between board structure and firm performance variability in an international setting. The authors further explore the effect of national culture in shaping such relations. Design/methodology/approach The authors’ international sample contains 4,911 firms across 49 countries over the 2002–2017 period. The authors use national culture values on individualism and power distance developed by Hofstede (1980, 2001, 2011). The authors focus on within-firm, over-time variability of firm performance and estimate multivariate linear regressions with fixed effects. The authors address the endogeneity concern using the instrumental variable approach, and the authors’ results are robust to alternative measures of variables and different subsamples. Findings The authors find that firms with larger board size, greater board independence and less powerful CEOs have less variable performance. Individualism has a magnifying effect while power distance has a mitigating effect in shaping such relations. Originality/value To the best of the authors’ knowledge, this study is among the first to answer the call of Adams, Hermalin and Weisbach (2010) for research on corporate boards in an international setting. It is also one of the few studies which examine the variability of firm performance, while the majority of existing literature focuses on the level of firm performance. Most importantly, to the best of the authors’ knowledge, this study is the first to explore the role of national culture in shaping boardroom interactions that affect the decision-making process of corporate boards, which, in turn, affects firm performance variability.

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Section: Introductionmentioning

confidence: 79%