Relationship Between Board Characteristics and Firm Performance in Sri Lankan Listed Companies
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description
Cross sectional analysis of the link between characteristics and firm performances in developed countries.
Transcript of Relationship Between Board Characteristics and Firm Performance in Sri Lankan Listed Companies
Business and Management
responsibility to protect and increase shareholders’ wealth (Fama and Jensen, 1983). In the recent past, the board has been largely criticized for the decline in shareholders’ wealth and corporate failure. They have been in the
Business and Management
board’s decision
Non-Executive director and firm performance
independent directors’ percentage in a firm and return on equity (ROE) among Belgian companies. O’Connell
Board size and firm performance
Business and Management
CEO duality and firm performance
ders’ wealth. Agency theorists argue that chairman and CEO should be separated, as this has the potential to increase the effectiveness of board monitoring (Finkelstein and D’ Aveni,
he CEO’s and the chairman’s
Director ownership and firm performance
holds part of the firm’s share, their interests affiliates the interests of other shareholders and they are less likely t can be concluded that directors’
: There is a positive relationship between directors’ ownership and firm performance.
Data and Sample
Research Model
+ Board Independence + Board Size + CEO Duality + ize + Leverage +
Variables and Descriptions
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Firm performance variables
Board characteristics variables
Control variables
Descriptive statistics
–
mean percentage of directors’ shareholdi
Correlation results
Business and Management
Regression results
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ristics such as board independence, board size, CEO duality and directors’
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