Board composition, board leadership structure and firm performance: evidence from Bangladesh
Paper
Paper/Presentation Title | Board composition, board leadership structure and firm performance: evidence from Bangladesh |
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Presentation Type | Paper |
Authors | |
Author | Rashid, Afzalur |
Editors | Segel, Naomi |
Journal or Proceedings Title | Proceedings of the 2009 Accounting and Finance Association of Australia and New Zealand Conference (2009 AFAANZ) |
ERA Conference ID | 42273 |
Number of Pages | 41 |
Year | 2009 |
Publisher | Accounting & Finance Association of Australia and New Zealand |
Place of Publication | Melbourne, Australia |
Web Address (URL) of Paper | http://www.afaanz.org/openconf/2009/modules/request.php?module=oc_proceedings&action=view.php&a=Accept+as+Paper&id=279 |
Conference/Event | 2009 Accounting and Finance Association of Australia and New Zealand Conference (2009 AFAANZ) |
Accounting and Finance Association of Australia and New Zealand Conference | |
Event Details | Accounting and Finance Association of Australia and New Zealand Conference AFAANZ Rank C C C C C |
Event Details | 2009 Accounting and Finance Association of Australia and New Zealand Conference (2009 AFAANZ) Parent Accounting and Finance Association of Australia and New Zealand Conference Delivery In person Event Date 05 to end of 07 Jul 2010 Event Location Adelaide, Australia |
Abstract | This study examines if the corporate board composition in the form of representation of outside independent directors and structural independence of the board influence the firm economic performance in Bangladesh. By using 2-stage least square regression (2SLS) analysis, it is found that neither the board composition, nor the CEO-duality influence the firm performance. The finding of this study does not capture the agency theory for board composition, implying that the outside independent directors are not good for firm performance in Bangladesh. However, it supports the agency theory for board leadership structure. The outside directors can not add any value as they do not have any supervisory position in the board; they may have a close relationship with inside board members; many of them may not have adequate qualification and expertise of the independent directors. Similarly, the CEO duality may have reduced the board’s ability to exercise the governance function in the context of Bangladesh. Therefore, without legislative requirement of having the adequate qualification and expertise of the independent directors and without restructuring the board, the board independence |
Keywords | agency theory; Bangladesh; board composition; board leadership; CEO; stewardship theory |
ANZSRC Field of Research 2020 | 350799. Strategy, management and organisational behaviour not elsewhere classified |
520104. Industrial and organisational psychology (incl. human factors) | |
380107. Financial economics | |
Public Notes | No evidence of copyright restrictions. |
Byline Affiliations | Abu Dhabi University, United Arab Emirates |
https://research.usq.edu.au/item/q0287/board-composition-board-leadership-structure-and-firm-performance-evidence-from-bangladesh
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