Volume 6, Issue 5, September 2018, Page: 105-109
The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan
Almontaser Abdallah Mohammad Qadorah, Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia
Faudziah Hanim Bt Fadzil, Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia
Received: Sep. 19, 2018;       Accepted: Oct. 9, 2018;       Published: Oct. 29, 2018
DOI: 10.11648/j.jfa.20180605.11      View  261      Downloads  48
Abstract
Previous studies that dealt with corporate governance have witnessed gradually significant growth that created some new trends. This paper aims to be involved in such trends through examining the link between board of director’s independence and board meeting frequency as one of the important corporate governance mechanisms and firm performance in Jordan as one of emerging economies. The current study used the multiple regression method to analyze available data for a sample of 64 industrial firms listed in the Amman Stock Exchange (ASE) for the fiscal year 2013. The findings revealed that the board of director's independence has a positive impact on performance. On the other hand, the findings surprisingly showed no evidence to support the impact of board meeting frequency on performance. The practical implications of the current study demonstrated that good corporate governance is imperative to all organizations and must be encouraged for the interest of all stakeholders. Unlike the majority of the previous studies, the current study unexpectedly found that board meeting frequency is not significantly contributing to the firm performance. In that, this study is the first study in emerging economies to investigate such a link. Such new insights on this relationship by current study provide helpful information that is of great value to the government, academics, policy makers, and other stakeholders.
Keywords
Corporate Governance, Board of Director’s Independence, Board Meeting, Firm Performance
To cite this article
Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil, The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan, Journal of Finance and Accounting. Vol. 6, No. 5, 2018, pp. 105-109. doi: 10.11648/j.jfa.20180605.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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