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Board Composition, CEO Duality and Corporate Financial Performance

Author

Listed:
  • Iftikhar-ul-Amin

    (Institute of Management Sciences, Peshawar)

  • Nadia Iftikhar

    (Institute of Management Sciences, Peshawar)

  • Muhammad Yasir

    (Institute of Management Sciences, Peshawar)

Abstract

This research study sheds light on the link between different board structure attributes and financial performance among 40 firms listed with Karachi Stock Exchange, by looking at the listing requirements which persuade greater board independence. In particular this study provides evidence that board size and sales growth positively affect corporate financial performance in Pakistan. Further according to the findings of this research there is a negative relationship of executive and non-executive (independent) directors on corporate financial performance of firms in Pakistan. Findings show that there is a mixed result shown for CEO duality and director’s share holding, ROE and ROI has a positive relation with CEO duality while negative association encounters as per Tobin’s q model; whereas ROE relates positively with director’s share holdings while ROI and Tobin’s q negatively relates to director’s share holdings. The rest of corporate governance parameters e.g. internal holdings and firm size have mix relationship with financial performance

Suggested Citation

  • Iftikhar-ul-Amin & Nadia Iftikhar & Muhammad Yasir, 2013. "Board Composition, CEO Duality and Corporate Financial Performance," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 5(1), pages 13-27, April.
    • Handle: RePEc:bec:imsber:v:5:y:2013:i:1:p:13-27
    DOI: dx.doi.org/10.22547/BER/5.1.2
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    References listed on IDEAS

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    Cited by:

    1. Khan, Naimat U. & Shah Jehan, Qurat Ul Ain & Shah, Attaullah, 2017. "Impact of taxation on dividend policy: Evidence from Pakistan," Research in International Business and Finance, Elsevier, vol. 42(C), pages 365-375.
    2. Sattar Khan & Yasir Kamal & Shahid Hussain & Muhammad Abbas, 2022. "Corporate governance looking back to look forward in Pakistan: a review, synthesis and future research agenda," Future Business Journal, Springer, vol. 8(1), pages 1-32, December.

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    More about this item

    Keywords

    Board composition; CEO duality; ROE; ROI;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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