Board effectiveness and corporate investment in emerging markets: evidence from the gulf cooperation council countries

IF 3.2 Q1 BUSINESS, FINANCE
Adam Yahya Jafeel, Ei Yet Chu, Yousif Abdelbagi Abdalla
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引用次数: 0

Abstract

Purpose

This study aims to empirically examine the impact of internal corporate governance mechanisms (ICGM) related to the size of the board, board composition, CEO duality and audit committee independence as a single metric on a firm’s investment decisions.

Design/methodology/approach

This study attempts to develop an internal corporate governance quality index comprising 10 items under four main ICGMs – size and independence of the board, CEO duality and audit committee independence – employing panel data analysis to investigate its impact on the investment decisions in 301 nonfinancial firms listed in six emerging capital markets in the Gulf Cooperation Council (GCC) member countries for the years 2015–2020. Data were extracted from sample companies' websites, stock markets, annual reports and Refinitiv database.

Findings

This study provides convincing evidence that effective ICGMs minimize inefficient investment and ultimately boost investment efficiency. The findings remain consistent even after considering the potential endogeneity bias.

Originality/value

This study provides empirical evidence on investment efficiency in the GCC region and emphasizes the importance of high-quality ICGMs in reducing inefficient investment. By examining the impact of ICGMs on investment inefficiencies, this study contributes to the corporate governance literature. The GCC region's unique economic and social contexts, with its growing economies, are considered to shed light on this issue.

新兴市场的董事会效率和企业投资:海湾合作委员会国家的证据
目的 本研究旨在以实证方法研究与董事会规模、董事会组成、首席执行官双重性和审计委员会独立性有关的内部公司治理机制(ICGM)作为单一指标对公司投资决策的影响。设计/方法/途径 本研究尝试采用面板数据分析法,在董事会规模和独立性、首席执行官双重性和审计委员会独立性这四个主要内部公司治理机制下开发一个由 10 个项目组成的内部公司治理质量指数,以调查其对 2015-2020 年海湾合作委员会(GCC)成员国六个新兴资本市场中上市的 301 家非金融公司的投资决策的影响。数据来自样本公司的网站、股票市场、年报和 Refinitiv 数据库。研究结果本研究提供了令人信服的证据,表明有效的 ICGM 可以最大限度地减少低效投资,并最终提高投资效率。即使考虑到潜在的内生性偏差,研究结果仍保持一致。原创性/价值本研究提供了海湾合作委员会地区投资效率的经验证据,并强调了高质量的 ICGM 在减少无效投资方面的重要性。本研究通过考察 ICGM 对投资低效的影响,为公司治理文献做出了贡献。考虑到海湾合作委员会地区独特的经济和社会背景及其不断增长的经济,本研究对这一问题进行了阐释。
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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来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
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