Open AccessBoard composition, board size and financial performance of Johannesburg stock exchange companies
Author(s) -
Munyradadzi Raymond Muchemwa,
Nirupa Padia,
Chris William Callaghan
Publication year - 2016
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v19i4.1342
Subject(s) - stock exchange , accounting , corporate governance , principal–agent problem , resource dependence theory , business , executive board , stock (firearms) , on board , context (archaeology) , empirical research , management , economics , finance , statistics , geography , mathematics , archaeology
On the basis of agency theory and resource dependence theory, as well as other corporate governance literature, it is predicted that board composition measured as the ratio of non-executive to executive board members and the number of directors on a firm’s board can be positively related to firm performance. This study seeks to test the predictions of this body of theory and to investigate the form of the empirical relationships among these effects. In so doing, this study tests theory that relates these variables in the context of a developing country, using data from South Africa’s Johannesburg Stock Exchange, over a seven-year period, 2006–2012