scholarly journals Unobservable characteristics of board directors and the performance of financial services firms in Nigeria

2020 ◽  
Vol 17 (4) ◽  
pp. 378-388
Author(s):  
Henry Osahon Osazevbaru ◽  
Emmanuel Mitaire Tarurhor
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Share Price ◽  
Corporate Board ◽  
Return On Assets ◽  
Data Set ◽  
Strategic Performance ◽  
Financial Firms

This paper examines the intricate link between unobservable characteristics of directors on the corporate board and firm performance. It aims to extend the literature on corporate governance and firm strategic performance from the perspective of emerging African economies. A mix of performance measures were used (Tobin Q, return on assets, and share price) and unobservable characteristics were captured as a stochastic element or heterogeneity of observable board characteristics (board activity, gender diversity, size, and independence). The study applied non-linear generalized auto-regressive conditional heteroscedasticity model to examine the data set consisting of 299 firm-year observations from 23 financial firms listed on the Nigerian Stock Exchange from 2006 to 2018. Positive skewness and leptokurtic distribution were found for all the variables. Correlation matrix revealed no multicollinearity, as the highest value was 0.2386. Empirical results suggest that unobservable characteristics significantly and positively influence firm performance as measured by return on assets and share price. This is because the coefficient of the lagged-value of the variance scaling parameter is positive and significant at the 1% level. However, with respect to Tobin Q measure, the result was positive but not significant at the 5% level. Implicitly, the result is sensitive to performance proxies. Accordingly, this study concludes that unobservable characteristics drive firm performance. It is recommended that boards and regulators should pay attention to unobservable characteristics.

scholarly journals Board Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Raheel Mumtaz ◽  
Muhammad Farooq Rehan ◽  
Quaisar Ijaz Khan
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Return On Assets ◽  
Insolvency Risk ◽  
Financial Firms ◽  
Adverse Influence ◽  
Board Gender Diversity ◽  
Practical Implications

This paper examines the influence of board gender diversity on firm performance and risk taking. We employed the panel data of seventy-five non-financial firms of KSE-100 index listed in the Pakistan Stock Exchange. The data consists of 2005-2018 period. Results of panel regression reveal that board gender diversity have adverse influence on the firm performance i-e Tobin’s Q and return on assets. Moreover, it further provides that board gender diversity has decrease the firm’s risk-taking i-e insolvency risk. Overall, the inclusion of females in the boardroom reduces the financial performance and decrease the risk-taking of non-financial firms in Pakistan. This study provides the managerial and practical implications in compliance with SECP Act of 2017, to include the females in boardroom to discourage the risk-taking behavior of firms.

Analisis Pengaruh ROA (Return On Assets), ROE (Return On Equity), dan EPS (Earning Per Share) terhadap Harga Saham pada Kelompok Industri Barang Konsumsi yang Terdaftar di BEI (Bursa Efek Indonesia)

2011 ◽  
Vol 2 (1) ◽  
pp. 173
Author(s):  
Sunaryo Sunaryo
Keyword(s):  
Stock Exchange ◽  
Primary Objective ◽  
Share Price ◽  
Return On Assets ◽  
Return On Equity ◽  
Low Correlation ◽  
Industrial Samples ◽  
Industrial Groups

The primary objective of this research is to learn correlation and effecting among EPS, ROA, and ROE with share price neither partial nor simultaneous. Data secondary collected by industrial samples of consumer groups listed at Indonesian Stock Exchange and the journal preceding research persons. The results of the research describe that EPS has an effecting significant and a high correlation, but ROA and ROE have not any effecting significant and low correlation, but ROA, ROE, and EPS have the effecting significant and high correlation simultaneous to share price. The topic of this research can be continued with other industrial groups or added a lot of new independence variables because if compared to preceding research persons mention the same and differences of its. 

scholarly journals Board diversity and financial performance: A graphical time-series approach

2015 ◽  
Vol 18 (3) ◽  
pp. 425-448 ◽  
Author(s):  
Cobus CH Taljaard ◽  
Michael JD Ward ◽  
Chris J Muller
Keyword(s):  
Time Series ◽  
Human Capital ◽  
Financial Performance ◽  
Demographic Data ◽  
Gender Diversity ◽  
Fiduciary Duty ◽  
Share Price ◽  
Theoretical Frameworks ◽  
Data Set ◽  
Board Diversity

Directors need to guide and govern companies on behalf of and for the benefit of shareholders and stakeholders. However questions remain as to whether boards with higher levels of diversity amongst directors are better equipped to fulfil their fiduciary duty than boards with lower levels of diversity. This research examines whether increased levels of diversity within boards are associated with improved financial performance to shareholders. From the literature, several theoretical frameworks that could explain why increased diversity might or might not lead to improved board performance were noted. Share returns and directors’ demographic data were collected for a sample of the largest 40 companies listed on the JSE from 2000 to 2013. This data was analysed using Muller and Ward’s (2013) investment style engine by forming portfolios of companies based on board-diversity constructs. Time-series graphs of cumulative portfolio market returns were analysed to determine if the diversity dimensions tested were associated with improved share performance. The results show that racial diversity within boards is not associated with financial performance. However, increased gender diversity and younger average board age are shown to have strong associations with improved share price performance. These findings are mainly attributed to agency-, resource dependency, human capital and signalling theories. Increased diversity is seen to bolster independence and lessen agency problems. Rising diversity levels also enlarge boards’ external networks, allowing diverse stakeholders’ needs to be accommodated and limiting dependence on strategic resources. Finally, as human capital is increased, the collection of different skills and experiences are associated with better performance. The results, based on a more robust methodology and improved data set, provide additional support to previous studies.

scholarly journals Gender diversity and governance: Analysis of Italian listed companies

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 329-338
Author(s):  
Graziella Sicoli ◽  
Giovanni Bronzetti ◽  
Dominga Ippolito ◽  
Giada Leonetti
Keyword(s):  
Corporate Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Corporate Board ◽  
Italian Law ◽  
Governance Analysis ◽  
Female Presence ◽  
Underrepresentation Of Women ◽  
The Impact

In recent years, many countries have adopted different legislative and self-regulatory initiatives to be able to tackle the problem of the underrepresentation of women on boards. Also, Italy with Law No. 120/2011 introduced the gender issue adopting the normative that 1/3 of the elected members would be women. In this job, a primary aim was to study over the period 2016/2018 the impact of female presence on boards of 50 companies listed on the Italian Stock Exchange. In depth, our results confirm that Italian Law has produced significant effects on the composition of the corporate board. The result of our study shows that women positively influence corporate performance, this is perfectly in line with the literature on gender diversity. The contribution of the work is that the empirical study conducted on the 50 companies listed on the Milan Stock Exchange allows confirming what has been claimed in the literature and that is the importance of the female presence on the boards. An immediate reading of the data allows us to confirm that the female presence in corporate governance has a positive impact on corporate performance and productivity.

scholarly journals The Impact of Board Composition on Firm Performance with Reference to Selected Indian Companies

2020 ◽  
Vol 8 (6) ◽  
pp. 2818-2824
Keyword(s):  
Firm Performance ◽  
Significant Relationship ◽  
Financial Services ◽  
Stock Exchange ◽  
Independent Directors ◽  
Board Composition ◽  
Women Directors ◽  
Board Size ◽  
Size Number ◽  
The Impact

This study examines effects of board composition on firm performance among 24 selected companies which are listed on the National Stock Exchange. It strives to understand the influence of corporate governance by testing 3 variables of board composition namely – board size, number of independent directors and the number of female directors on a company’s profitability measured through the tool – Tobin’s Q. One-way Anova test is used to establish a relationship between each of the three variables of board composition with firm profits. The study is conducted over a period of 5 years from 2013 to 2018 and concentrates on the following sectors - Auto, Financial Services, FMCG, IT, Media, Metal, Pharma, and Realty. The results revealed a significant relationship between board size and number of independent directors with firm profits which meant a firm with a greater sized board or more independent directors also showed higher profits in comparison. While, no significant relationship was found between the number of women directors on a firms’ board and firm performance.

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navaz Naghavi ◽  
Saeed Pahlevan Sharif ◽  
Hafezali Bin Iqbal Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Data Set ◽  
Content Type ◽  
Board Gender Diversity ◽  
The Impact

PurposeThis study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

Where Women Make a Difference: Gender Quotas and Firms’ Performance in Three European Countries

ILR Review ◽  
2019 ◽  
Vol 73 (3) ◽  
pp. 768-793 ◽  
Author(s):  
Simona Comi ◽  
Mara Grasseni ◽  
Federica Origo ◽  
Laura Pagani
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Gender Quotas ◽  
Policy Debate ◽  
Corporate Board ◽  
Firm Level ◽  
Data Set ◽  
Accounting Data ◽  
Positive Effect ◽  
Identification Strategy

The authors study the effect of corporate board gender quotas on firm performance in France, Italy, and Spain. The identification strategy exploits the exogenous variation in mandated gender quotas within country and over time and uses a counterfactual methodology. Using firm-level accounting data and a difference-in-difference estimator, the authors find that gender quotas had either a negative or an insignificant effect on firm performance in the countries considered with the exception of Italy, where they find a positive impact on productivity. The authors then focus on Italy. Using a novel data set containing detailed information on board members’ characteristics, they offer possible explanations for the positive effect of gender quotas. The results provide an important contribution to the policy debate about the optimal design of legislation on corporate gender quotas.

Commissioner Board Monitoring to Create Firm Performance through Environmentally Friendly Management

2018 ◽  
Vol 9 (3) ◽  
pp. 659 ◽  
Author(s):  
Mohamad Nur UTOMO ◽  
Sugeng WAHYUDI ◽  
Harjum MUHARAM ◽  
Jeudi Agustina T.P. SIANTURI
Keyword(s):  
Firm Performance ◽  
Indirect Effect ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Empirical Test ◽  
Board Size ◽  
Financial Firms ◽  
Assessment Program ◽  
Board Monitoring ◽  
Positive Effect

The paper is written as an empirical test on the indirect effect of Commissioner Board Monitoring on firm performance through environmental performance as mediation variable. Research sample is non-financial firms that participate into Performance Assessment Program (PROPER) and that also list at Indonesian Stock Exchange. Commissioner Board Monitoring consists of few attributes such as: Commissioner Board Size, Independent Commissioner Board, and Commissioner Board’s Frequency of Meeting. Environmental performance is measured with the use of PROPER by the Ministry of Life Environment and Forestry for Indonesian Republic. Firm performance is proxied with Return on Asset (ROA) and Tobin’s Q. Research gains some results. Commissioner Board Monitoring has a positive effect on both environmental performance and firm performance. Environmental performance has a positive effect on firm performance. Commissioner Board Size has an indirect effect on firm performance through environmental performance. All these findings support agency theory and stakeholder theory. Any firms attempting to maximize performance shall balance the interest of shareholder (firm owner) and stakeholder.

scholarly journals Analisis Pengaruh Return On Asset (ROA) Dan Return On Equity (ROE) Terhadap Harga Saham PT. Indosat Tbk

2021 ◽  
Vol 2 (2) ◽  
pp. 264-274
Author(s):  
Roslina ◽  
Alwi
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Share Price ◽  
Financial Statement ◽  
Net Income ◽  
Literature Study ◽  
Return On Assets ◽  
Return On Equity

Before investing, investors must know and choose stocks that can provide benefits by assessing the ratio of return on assets (ROA) and return on equity (ROE). This study aims to observe and analyze the effect of return on assets (ROA) and return on equity (ROE) on the stock price of Pt. Indosat Tbk. This research is an associative type, using quantitative data from secondary data sources. The population in this study is the Financial Statements of Pt. Indosat, Tbk. Which is calculated from the beginning of going public for the period 1994-2020, which is for 25 years. The sample used is the period 2006-2019, which is 14 years at Pt.IndosatTbk which is listed on the Indonesian stock exchange. The sampling technique used in this study is purposive sampling with the sampling criteria in this study are updated financial statement data for 14 years from 2006-2019. 2019. The research instrument used is in the form of financial statement data consisting of a statement of net income, total assets, total equity and profit and loss of the company to get the share price value for the period 2006-2019. Data collection techniques used are documentation and literature study. The data analysis technique used is the classical assumption test, multiple linear regression analysis, multiple correlation coefficients, determination test, t test and f test. The results showed that return on assets (ROA) and return on equity (ROE) had a significant effect on the stock price of PT. Indosat Tbk.

scholarly journals Corporate governance, institutional investor type and firm performance: Evidence from an emerging market

2021 ◽  
Vol 5 (4) ◽  
pp. 20-27
Author(s):  
Rama Sastry Vinjamury
Keyword(s):  
Firm Performance ◽  
Institutional Investors ◽  
Firm Value ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Emerging Market ◽  
Developed Economies ◽  
Financial Firms ◽  
Pressure Sensitive

The study analyses the role of institutional investors in improving firm performance. Unlike in developed economies where firm ownership is widely dispersed, firms in emerging economies such as India have substantial promoter shareholdings (often in a majority or close to a majority). Given the promoter control of Indian companies, the role of institutional investors as external monitors is analysed. Following Brickley, Lease, and Smith (1988) and Almazan, Hartzell, and Starks (2005), the study categorises institutional investors as pressure-sensitive and pressure-insensitive institutional investors. Panel data for non-financial firms from India included in National Stock Exchange (NSE) 500 over the period 2008–2017 is studied using fixed-effects models. The study finds that the increased ownership of pressure-insensitive institutional investors is positively associated with firm performance. Also, the increased ownership of pressure-sensitive institutional investors is negatively associated with firm performance. These findings are consistent with the view that pressure-insensitive institutional investors are more effective monitors compared to pressure-sensitive institutional investors. The study offers insights into the role of institutional investors in economies where firms have a substantial promoter shareholding. The study documents that even with a substantial promoter shareholding and control, pressure-insensitive institutional investors aid in enhancing firm value

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