Do corporate boards affect firm performance: New evidence from an emerging economy

Qaiser Rafique Yasser, Abdullah Al-Mamun, Michael Seamer

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

Purpose

The purpose of this paper is to examine an association between board demographics and corporate performance using a sample of Pakistani firms listed on the Pakistan Stock Exchange in the 2014 year.

Design/methodology/approach

This study is unique in that corporate performance is examined using a mixture of performance measures: accounting-based measures (return on assets), market-based measures (Tobin’s Q, earnings per share, and total return) and economic profit measures (economic value added).

Findings

The results of this research show a significant positive relationship between board size, minority representation on the board and the appointment of a family director and enhanced firm performance. However, contrary to expectations, the authors also find that instead of adding value, the appointment of independent directors to Pakistani firm boards negatively impacts firm value.

Originality/value

This study adds to a growing body of empirical evidence that suggests that agency theory-based corporate governance recommendations adopted in developed economies may not be relevant to emerging economy firms.

Original languageEnglish
Pages (from-to)724-741
Number of pages18
JournalInternational Journal of Productivity and Performance Management
Volume66
Issue number6
DOIs
Publication statusPublished - 10 Jul 2017

Fingerprint

Dive into the research topics of 'Do corporate boards affect firm performance: New evidence from an emerging economy'. Together they form a unique fingerprint.

Cite this