The impact of corporate board meetings on corporate performance in South Africa
The impact of corporate board meetings on corporate performance in South Africa
We investigate the impact of corporate board meetings on corporate performance for a sample of 169 listed corporations from 2002 to 2007 in South Africa (SA). Our findings suggest a statistically significant and positive association between the frequency of corporate board meetings and corporate performance, implying that SA boards that meet more frequently tend to generate higher financial performance. A further investigation indicates a significant non-monotonic link between the frequency of corporate board meetings and corporate performance, suggesting that either a relatively small or large number of corporate board meetings impacts positively on corporate performance. Our findings are consistent across a raft of econometric models that control for different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that corporate boards that meet more frequently have increased capacity to effectively advise, monitor and discipline management, and thereby improving corporate financial performance.
corporate governance, corporate board meetings, corporate performance, King II, South Africa, endogeneity
83-103
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Osei, Kofi A.
c2f5f5a9-a531-4db1-a59a-7561dcf307e8
June 2011
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Osei, Kofi A.
c2f5f5a9-a531-4db1-a59a-7561dcf307e8
Ntim, Collins G. and Osei, Kofi A.
(2011)
The impact of corporate board meetings on corporate performance in South Africa.
African Review of Economics and Finance, 2 (2), .
Abstract
We investigate the impact of corporate board meetings on corporate performance for a sample of 169 listed corporations from 2002 to 2007 in South Africa (SA). Our findings suggest a statistically significant and positive association between the frequency of corporate board meetings and corporate performance, implying that SA boards that meet more frequently tend to generate higher financial performance. A further investigation indicates a significant non-monotonic link between the frequency of corporate board meetings and corporate performance, suggesting that either a relatively small or large number of corporate board meetings impacts positively on corporate performance. Our findings are consistent across a raft of econometric models that control for different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that corporate boards that meet more frequently have increased capacity to effectively advise, monitor and discipline management, and thereby improving corporate financial performance.
Text
Collins Ntim African Review of Economics and Finance 2011
- Accepted Manuscript
More information
Published date: June 2011
Keywords:
corporate governance, corporate board meetings, corporate performance, King II, South Africa, endogeneity
Organisations:
Centre of Excellence for International Banking, Finance & Accounting, Accounting
Identifiers
Local EPrints ID: 343111
URI: http://eprints.soton.ac.uk/id/eprint/343111
ISSN: 2042-1478
PURE UUID: 1b4a99c1-458c-44db-8f9f-1ef3ccc5a9eb
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Date deposited: 24 Sep 2012 14:14
Last modified: 15 Mar 2024 02:27
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Author:
Kofi A. Osei
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