Board diversity and firm’s financial performance: A study on DSE listed pharmaceutical companies in Bangladesh.
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 12
Abstract
Thestudy examines the impact of board diversity on the firms’ financial performance of Dhaka Stock Exchange listed pharmaceutical companies in Bangladesh. Based on existing experimental studies, five major board characteristics (board size, gender diversity, board composition, CEO duality, and qualification of independent director) have been selected to identify their impact on firm’s financial performance (ROE, ROA, and NAVPS). The study is mainly based on secondary data which collected from Annual reports of the seven sample companies during 2012 to 2017. To identify the impact or relationship of various variables, different statistical tools such as regression, correlation and variance analysishave been applied. The results show that pharmaceutical companies’ financial performance can be driven by corporate board diversity but not every mechanism has significant impact on firms’ financial performance. The predictors board size, board composition and CEO duality have positive impacton the other hand gender diversity has negative impacton ROE and ROA but all predictors except dummy have positive impacton NAVPS. The paper suggests that to increase the shareholder’s value, companies should focus on board diversity mechanisms and also suggest that the board of directors should include trained and mature female directors.
Authors and Affiliations
Md. Nazrul Islam
Keywords
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- EP ID EP422285
- DOI 10.9790/487X-2012022632.
- Views 101
- Downloads 0
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