Board composition, board leadership structure and firm performance: evidence from Bangladesh

Paper

Rashid, Afzalur. 2009. "Board composition, board leadership structure and firm performance: evidence from Bangladesh." Segel, Naomi (ed.) 2009 Accounting and Finance Association of Australia and New Zealand Conference (2009 AFAANZ). Adelaide, Australia 05 - 07 Jul 2010 Melbourne, Australia. Accounting & Finance Association of Australia and New Zealand.
Paper/Presentation Title

Board composition, board leadership structure and firm performance: evidence from Bangladesh

Presentation TypePaper
Authors
AuthorRashid, Afzalur
EditorsSegel, Naomi
Journal or Proceedings TitleProceedings of the 2009 Accounting and Finance Association of Australia and New Zealand Conference (2009 AFAANZ)
ERA Conference ID42273
Number of Pages41
Year2009
PublisherAccounting & Finance Association of Australia and New Zealand
Place of PublicationMelbourne, Australia
Web Address (URL) of Paperhttp://www.afaanz.org/openconf/2009/modules/request.php?module=oc_proceedings&action=view.php&a=Accept+as+Paper&id=279
Conference/Event2009 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
may not provide any beneficial outcome to the firms.

Keywordsagency theory; Bangladesh; board composition; board leadership; CEO; stewardship theory
ANZSRC Field of Research 2020350799. 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 AffiliationsAbu Dhabi University, United Arab Emirates
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