The effects of board structure on corporate performance: Evidence from East African frontier markets
Guney, Yilmaz; Karpuz, Ahmet; Komba, Gabriel
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.
|Journal Article Type||Article|
|Journal||Research in International Business and Finance|
|Peer Reviewed||Peer Reviewed|
|APA6 Citation||Guney, Y., Karpuz, A., & 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. https://doi.org/10.1016/j.ribaf.2020.101222|
|Keywords||Corporate governance; Board attributes; Frontier markets; Agency theory; Resource dependence theory|
|Additional Information||This article is maintained by: Elsevier; Article Title: The effects of board structure on corporate performance: Evidence from East African frontier markets; Journal Title: Research in International Business and Finance; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.ribaf.2020.101222; Content Type: article; Copyright: © 2020 Elsevier B.V. All rights reserved.|
This file is under embargo until Oct 31, 2021 due to copyright reasons.
Contact Y.Guney@hull.ac.uk to request a copy for personal use.
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