Interlocking Directorate and Firm Performance of Listed Companies in Sri Lanka

Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal Pub Date : 2019-01-30 DOI:10.5958/2249-7323.2019.00003.8

Farwis Mahrool, N. Abdul

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引用次数: 3

Abstract

Purpose: The purpose of this paper is to investigate the relationship between director interlock and firm performance in Sri Lanka. The author posits that directors gain experiences due to director interlocking which enables them to contribute to the firm performance. On the other hand, busyness of directors due to director interlock destructs the firm performance along with board characteristics.

Design/Methodology/Approach: Secondary data were obtained from published audited annual reports of 156 companies listed in Colombo Stock Exchange for the period of 2010 to 2017. Ordinary Least squares regression model was used to examine the relationship between director interlocking and firm performance.

Findings: Empirically, it was found that there is a significant negative association between directors interlocking and firm performance. Further, it was found that, Board size, CEO duality and NED significantly negatively associate with firm performance. The result evidences that NED mere participation on corporate boards within the company would not enhance firm performance.

Originality/Value: Prior several studies in this nature were performed with develop country data set where this study was emerging market perspective. It may the initial study in Sri Lankan perspective and it could be a tools for evaluate the firm performance.

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斯里兰卡上市公司连锁董事与公司绩效

目的:本文的目的是调查斯里兰卡董事联锁与公司绩效之间的关系。作者认为，由于董事联锁，董事获得经验，使他们能够为公司绩效做出贡献。另一方面，由于董事联锁导致的董事忙碌破坏了公司绩效和董事会特征。设计/方法/方法:二级数据来自2010年至2017年期间在科伦坡证券交易所上市的156家公司公布的经审计的年度报告。采用普通最小二乘回归模型对董事连锁效应与企业绩效之间的关系进行了检验。研究结果:实证研究发现，董事连锁与公司绩效之间存在显著的负相关关系。进一步，我们发现董事会规模、CEO二元性和NED与公司绩效显著负相关。结果表明，NED仅仅参与公司内部董事会并不能提高公司绩效。原创性/价值:之前的几项研究都是用发展中国家的数据集进行的，而这项研究是从新兴市场的角度进行的。这可能是斯里兰卡视角的初步研究，可以作为评估企业绩效的工具。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal

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