The Role of Board of Directors in Firm Performance and Risk Disclosure "An Empirical Study on the Egyptian Companies"

Abstract

This study seeks to examine the impact of board of directors' characteristics on both firm performance and risk disclosure for a sample of companies listed on the Egyptian Stock Exchange (EGX) for the period from 2016 until 2020. The results of the study showed for empirical regression model (1) that there is a negative insignificant association between board size and firm performance. The results also indicated that there is a positive significant association between board independence and firm performance. Furthermore, the results indicated that there is a positive insignificant association between board meetings and firm performance. The results also showed that there is a negative insignificant association between board expertise and firm performance. The results also indicated that there is a positive significant association between board of directors' connections and firm performance. ‫ـــــــــــــــــــــــــــــــــــــــ‬ ‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬ * A research extracted from a thesis under preparation for obtaining the degree of Doctor of Philosophy (Ph.D.) in Accounting, entitled "The Role of Board of Directors and Risk Management Committee in Firm Performance and Risk Disclosure ‫ــ‬ An Empirical Study on the Egyptian Companies". 127 directors' characteristics and firm performance using a sample of 93 non-financial companies listed on Dhaka Stock Exchange (DSE) in 2006. The study found that there is a positive association between board independence and firm performance. Abdel Atty et al. (2018) study examined the effect of board of directors' characteristics on financial performance using a sample of 50 more active Egyptian companies listed on the Egyptian Stock Exchange (EGX) of non-financial companies from 2012 to 2017. The study found that there is a positive association between board meetings and firm performance. Ali and Nasir (2014) study examined the effect of board of directors' characteristics on financial performance using data collected from the annual reports of companies in Pakistan from 2007 to 2011. The study found that board independence has a significant positive effect on firm performance. Al-Matari et al. (2014) study examined the association between board of directors' characteristics and firm performance (ROA) using a sample of 81 companies listed on the Muscat Security Market (MSM) from 2011 to 2012. The study found that board meetings are positively associated with firm performance. Johl et al. (2015) study examined the effect of board characteristics on firm performance using data collected from the annual reports of 700 Malaysian public listed companies in 2009. The study found that board size is positively associated with firm performance. Johl et al. (2015) study examined the effect of board characteristics on firm performance using data collected from the annual reports of 700 Malaysian public listed companies in 2009. The study found that board expertise is positively associated with firm performance. Shin et al. (2018) study examined the...