Nexus between board characteristics, firm performance and intellectual capital: an emerging market evidence

IF 5.5 Q1 BUSINESS

Corporate Governance-The International Journal of Business in Society Pub Date : 2023-03-28 DOI:10.1108/cg-08-2022-0355

M. Farooq, N. Ahmad

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引用次数: 0

Abstract

Purpose This study aims to examine the moderating effect of intellectual capital (IC) in the relationship between board characteristics and firm performance of non-financial firms listed on the Pakistan Stock Exchange (PSX) from 2010 to 2019. Design/methodology/approach The modified value-added intellectual capital (MVAIC) was used to assess the efficiency of sample firms’ IC, which is a modified version of Pulic’s (2000) model VAIC that includes an additional component, rational capital efficiency. Board size, independence, board meetings, chief executive officier duality and board gender diversity are all measures of board characteristics. Firm performance is measured through return on assets, return on equity and earnings per share. The Hausman test was used to select the best model for the study. Findings Based on the regression results, the board’s gender diversity and duality have a significant inverse relationship with profitability. In terms of the impact of board characteristics on IC, it is discovered that board independence and diversity are significantly inversely related to IC. Furthermore, IC is significantly related to profitability by all means. In terms of the moderating effect of IC, the findings show that IC significantly moderates the negative relationship between duality and profitability, as well as board gender diversity and profitability. Practical implications This study made some policy recommendations to policymakers. Duality should be avoided in PSX firms because it is significantly inversely related to profitability and IC. Second, female board participation should be subjective. Third, because the findings indicate that Pakistani firms lack true board independence, the Securities and Exchange Commission of Pakistan should take additional steps to ensure that the board is truly independent. Originality/value To the best of the authors’ knowledge, this is the first study of its kind to study the moderating effect of IC between corporate governance and firm performance.

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董事会特征、公司绩效和智力资本之间的关系:新兴市场证据

目的研究2010 - 2019年在巴基斯坦证券交易所(PSX)上市的非金融公司董事会特征与公司绩效之间的关系中，智力资本(IC)的调节作用。改进的增值智力资本(MVAIC)被用来评估样本公司的智力资本效率，这是public(2000)的增值智力资本模型的修改版本，其中包括一个额外的组成部分，理性资本效率。董事会规模、独立性、董事会会议、首席执行官的二元性和董事会性别多样性都是衡量董事会特征的指标。公司业绩是通过资产回报率、股本回报率和每股收益来衡量的。采用Hausman检验为本研究选择最佳模型。回归结果显示，董事会性别多样性和性别二元性与盈利能力呈显著负相关。在董事会特征对集成电路的影响方面，我们发现董事会独立性和多样性与集成电路呈显著的负相关。此外，集成电路与盈利能力也有显著的相关关系。在董事会性别多样性的调节作用方面，研究发现，董事会性别多样性显著调节了董事会性别多样性与盈利能力之间的负向关系。本研究对政策制定者提出了一些政策建议。在PSX公司中应该避免二元性，因为它与盈利能力和集成电路呈显著负相关。其次，女性董事会参与应该是主观的。第三，由于调查结果表明巴基斯坦公司缺乏真正的董事会独立性，巴基斯坦证券交易委员会应采取额外措施确保董事会真正独立。原创性/价值据作者所知，这是同类研究中首次研究公司治理与公司绩效之间集成集成的调节作用。

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来源期刊

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.