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Do board characteristics affect financial performance of firms? An empirical study on Dhaka Stock Exchange (DSE) listed Insurance Companies of Bangladesh

Author

Listed:
  • Md. Kamrul Islam

    (Department of Business Administration, Notre Dame University Bangladesh, Dhaka, Bangladesh.)

  • Sugandha Mobin Sharna

    (Independent Researcher, Dhaka, Bangladesh.)

Abstract

This study has conducted to find out whether board characteristics have any correlation with the insurance companies’ financial performance or not. It considered 27 DSE listed insurance companies’ secondary data spanning five years. To draw the relation between characteristics of boards and performance of companies, there has been a regression analysis considering board size, women members in the board, number of independent directors and audit committee size as independent variables, the dependent variable has been considered to be return on assets (ROA). The study found that the only factor significantly affecting ROA is independent directors’ number. The findings of this research will help policy makers as well as investors to understand the significance of independent directors, therefore, affect their decision-making approach. As this research only considered DSE listed companies, there is a scope of further research considering insurance companies which are not listed in DSE.

Suggested Citation

  • Md. Kamrul Islam & Sugandha Mobin Sharna, 2022. "Do board characteristics affect financial performance of firms? An empirical study on Dhaka Stock Exchange (DSE) listed Insurance Companies of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 14(1), pages 1-10.
    • Handle: RePEc:aif:journl:v:14:y:2022:i:1:p:1-10
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    References listed on IDEAS

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