The effects of board structure on corporate performance: Evidence from East African Frontier Markets
The effectiveness of the well-known corporate governance practices may not be universal due to fundamental differences in the environments under which firms operate. By using hand-collected data from all the non-financial firms listed on the unexplored East African frontier markets (i.e., Kenya, Tan...
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| Lenguaje: | en_US |
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Research in International Business and Finance
2024
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| Acceso en línea: | https://doi.org/10.1016/j.ribaf.2020.101222 https://scholar.mzumbe.ac.tz/handle/123456789/370 |
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| _version_ | 1835205593663537152 |
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| author | Guney, Yilmaz Karpuz, Ahmet Komba, Gabriel |
| author_facet | Guney, Yilmaz Karpuz, Ahmet Komba, Gabriel |
| author_sort | Guney, Yilmaz |
| collection | DSpace |
| description | The effectiveness of the well-known corporate governance practices may not be universal due to fundamental differences in the environments under which firms operate. By using hand-collected data from all the non-financial firms listed on the unexplored East African frontier markets (i.e., Kenya, Tanzania and Uganda), we examine the effect of board characteristics on the performance of firms. Our results show that board size has a negative and significant effect on firm performance. The presences of foreigners and civil servants on the board play positive roles on financial performance, where the agency and resource dependence theories apply. Further, we find that board members with higher education also contribute to firm performance. These findings still hold when we consider the 2008–2009 financial crisis period. Overall, we show that in a business climate where ownership is largely dominated by few shareholders, the conventional governance mechanisms do not work effectively. |
| format | Article |
| id | oai:null:123456789-370 |
| institution | Mzumbe University |
| language | en_US |
| publishDate | 2024 |
| publisher | Research in International Business and Finance |
| record_format | dspace |
| spelling | oai:null:123456789-3702024-03-14T06:00:30Z The effects of board structure on corporate performance: Evidence from East African Frontier Markets Guney, Yilmaz Karpuz, Ahmet Komba, Gabriel Corporate Governance Board Attributes Frontier Markets Agency Theory Resource Dependence Theory The effectiveness of the well-known corporate governance practices may not be universal due to fundamental differences in the environments under which firms operate. By using hand-collected data from all the non-financial firms listed on the unexplored East African frontier markets (i.e., Kenya, Tanzania and Uganda), we examine the effect of board characteristics on the performance of firms. Our results show that board size has a negative and significant effect on firm performance. The presences of foreigners and civil servants on the board play positive roles on financial performance, where the agency and resource dependence theories apply. Further, we find that board members with higher education also contribute to firm performance. These findings still hold when we consider the 2008–2009 financial crisis period. Overall, we show that in a business climate where ownership is largely dominated by few shareholders, the conventional governance mechanisms do not work effectively. 2024-03-14T06:00:25Z 2024-03-14T06:00:25Z 2020 Article APA 0275-5319 https://doi.org/10.1016/j.ribaf.2020.101222 https://scholar.mzumbe.ac.tz/handle/123456789/370 en_US application/pdf Research in International Business and Finance |
| spellingShingle | Corporate Governance Board Attributes Frontier Markets Agency Theory Resource Dependence Theory Guney, Yilmaz Karpuz, Ahmet Komba, Gabriel The effects of board structure on corporate performance: Evidence from East African Frontier Markets |
| title | The effects of board structure on corporate performance: Evidence from East African Frontier Markets |
| title_full | The effects of board structure on corporate performance: Evidence from East African Frontier Markets |
| title_fullStr | The effects of board structure on corporate performance: Evidence from East African Frontier Markets |
| title_full_unstemmed | The effects of board structure on corporate performance: Evidence from East African Frontier Markets |
| title_short | The effects of board structure on corporate performance: Evidence from East African Frontier Markets |
| title_sort | effects of board structure on corporate performance evidence from east african frontier markets |
| topic | Corporate Governance Board Attributes Frontier Markets Agency Theory Resource Dependence Theory |
| url | https://doi.org/10.1016/j.ribaf.2020.101222 https://scholar.mzumbe.ac.tz/handle/123456789/370 |
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