No open-access location is known for this record yet.
No open-access location is known for this record yet.
This study examines if the corporate board composition in the form of representation of outside independent directors and structural independence of the board influence the firm economic performance in Bangladesh. By using 2-stage least square regression (2SLS) analysis, it is found that neither the board composition, nor the CEO-duality influence the firm performance. The finding of this study does not capture the agency theory for board composition, implying that the outside independent directors are not good for firm performance in Bangladesh. However, it supports the agency theory for board leadership structure. The outside directors can not add any value as they do not have any supervisory position in the board; they may have a close relationship with inside board members; many of them may not have adequate qualification and expertise of the independent directors. Similarly, the CEO duality may have reduced the board’s ability to exercise the governance function in the context of Bangladesh. Therefore, without legislative requirement of having the adequate qualification and expertise of the independent directors and without restructuring the board, the board independence \nmay not provide any beneficial outcome to the firms.
Loading…
Imported from OpenAlex (CC0) — nothing here is generated.