Board composition and firm performance: evidence from Bangladesh

Article

Rashid, Afzalur, De Zoysa, Anura, Lodh, Sudhir and Rudkin, Kathy. 2010. "Board composition and firm performance: evidence from Bangladesh." Australasian Accounting Business and Finance Journal. 4 (1), pp. 76-95.
Article Title

Board composition and firm performance: evidence from Bangladesh

ERA Journal ID40372
Article CategoryArticle
AuthorsRashid, Afzalur (Author), De Zoysa, Anura (Author), Lodh, Sudhir (Author) and Rudkin, Kathy (Author)
Journal TitleAustralasian Accounting Business and Finance Journal
Journal Citation4 (1), pp. 76-95
Number of Pages20
Year2010
PublisherUniversity of Wollongong
Place of PublicationWollongong, Australia
ISSN1834-2000
1834-2019
Web Address (URL)http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1069&context=aabfj
Abstract

This study examines the influence of corporate board composition in the form of representation of outside independent directors on firm economic performance in Bangladesh. Two hypotheses are developed to examine the relationship among composition of board memberships including independent directors and firm performance. An observation of 274 Bangladeshi firm-years is used in the study. A linear regression analysis is used to test the hypotheses. Results reveal that the outside (independent) directors cannot add potential value to the firm’s economic performance in Bangladesh. The idea of the introduction of independent directors may have benefits for greater
transparency, but the non-consideration of the underlying institutional and cultural differences in an emerging economy such as Bangladesh may not result in economic value addition to the firm. The findings provide an insight to the regulators in their quest for harmonization of international corporate governance practices.

Keywordsboard composition; independent directors; firm performance; Bangladesh
ANZSRC Field of Research 2020350799. Strategy, management and organisational behaviour not elsewhere classified
380109. Industry economics and industrial organisation
350102. Auditing and accountability
Public Notes

File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsSchool of Accounting, Economics and Finance
University of Wollongong
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