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The impact of multiple directorships, board characteristics, and ownership on the performance of Palestinian listed companies

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  • Mohammed W.A. Saleh
  • Rohaida Abdul Latif
  • Fathiyyah Abu Bakar
  • Zahraddeen Salisu Maigoshi

Abstract

This research investigates the impact of multiple directorships, board characteristics, and ownership structure among non-financial firms listed on the Palestine Security Exchange (PSE) during the period from 2009 to 2016. Based on panel data of 200 observations, the results show that multiple directorships of board members, more especially independent directors, reduce the overall effectiveness of the firms and lowers their performance. In contrast, results show that board gender diversity and institutional ownership improve corporate performance. The analysis was repeated by considering Tobin's Q as a dependent. This study is timely, given some unique justifications and recommendations for limiting the practice of having excessive multiple directorships because this practice distracts managers from adequately performing their duties.

Suggested Citation

  • Mohammed W.A. Saleh & Rohaida Abdul Latif & Fathiyyah Abu Bakar & Zahraddeen Salisu Maigoshi, 2020. "The impact of multiple directorships, board characteristics, and ownership on the performance of Palestinian listed companies," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 16(1), pages 63-80.
    • Handle: RePEc:ids:ijaape:v:16:y:2020:i:1:p:63-80
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    References listed on IDEAS

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    5. Lone Engbo Christiansen & Ms. Huidan Huidan Lin & Ms. Joana Pereira & Petia Topalova & Ms. Rima A Turk, 2016. "Gender Diversity in Senior Positions and Firm Performance: Evidence from Europe," IMF Working Papers 2016/050, International Monetary Fund.
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    Cited by:

    1. Chengpeng Zhu & Muhammad Husnain & Saif Ullah & Muhammad Tasnim Khan & Waris Ali, 2022. "Gender Diversity and Firms’ Sustainable Performance: Moderating Role of CEO Duality in Emerging Equity Market," Sustainability, MDPI, vol. 14(12), pages 1-26, June.

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