Guney, Y, Karpuz, A and Komba, G (2020) The effects of board structure on corporate performance: Evidence from East African frontier markets. Research in International Business and Finance, 53. 101222. p. 101222. ISSN 0275-5319
Abstract
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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 Elsevier B.V. All rights reserved. This is an author produced version of an article, published in Research in International Business and Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Corporate governance; Board attributes; Frontier markets; Agency theory; Resource dependence theory |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 05 Dec 2022 11:33 |
Last Modified: | 05 Dec 2022 11:33 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.ribaf.2020.101222 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:193700 |
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