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The impact of board characteristics on the financial performance of Tanzanian firms

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The impact of board characteristics on the financial performance of Tanzanian firms. / Assenga, Modest P.; Aly, Doaa; Hussainey, Khaled.

In: Corporate Governance: The International Journal of Business in Society, 30.04.2018.

Research output: Contribution to journalArticlepeer-review

Harvard

Assenga, MP, Aly, D & Hussainey, K 2018, 'The impact of board characteristics on the financial performance of Tanzanian firms', Corporate Governance: The International Journal of Business in Society. https://doi.org/10.1108/CG-09-2016-0174

APA

Assenga, M. P., Aly, D., & Hussainey, K. (2018). The impact of board characteristics on the financial performance of Tanzanian firms. Corporate Governance: The International Journal of Business in Society. https://doi.org/10.1108/CG-09-2016-0174

Vancouver

Assenga MP, Aly D, Hussainey K. The impact of board characteristics on the financial performance of Tanzanian firms. Corporate Governance: The International Journal of Business in Society. 2018 Apr 30. https://doi.org/10.1108/CG-09-2016-0174

Author

Assenga, Modest P. ; Aly, Doaa ; Hussainey, Khaled. / The impact of board characteristics on the financial performance of Tanzanian firms. In: Corporate Governance: The International Journal of Business in Society. 2018.

Bibtex

@article{73eecd0bd9584efc9057723892be251d,
title = "The impact of board characteristics on the financial performance of Tanzanian firms",
abstract = "Purpose - This study investigates the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/ Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories: namely, agency theory; and resource dependence theory. Design/methodology/approach - The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell, 2011) to integrate quantitative and qualitative data. Findings - It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles; they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification, and foreign directors.Theoretical and practical implications - The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value - The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach. ",
keywords = "corporate governance, board of director, board characteristics, firm performance, Tanzania",
author = "Assenga, {Modest P.} and Doaa Aly and Khaled Hussainey",
year = "2018",
month = apr,
day = "30",
doi = "10.1108/CG-09-2016-0174",
language = "English",
journal = "Corporate Governance: The International Journal of Business in Society",
issn = "1472-0701",
publisher = "Emerald Group Publishing Ltd.",

}

RIS

TY - JOUR

T1 - The impact of board characteristics on the financial performance of Tanzanian firms

AU - Assenga, Modest P.

AU - Aly, Doaa

AU - Hussainey, Khaled

PY - 2018/4/30

Y1 - 2018/4/30

N2 - Purpose - This study investigates the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/ Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories: namely, agency theory; and resource dependence theory. Design/methodology/approach - The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell, 2011) to integrate quantitative and qualitative data. Findings - It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles; they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification, and foreign directors.Theoretical and practical implications - The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value - The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

AB - Purpose - This study investigates the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/ Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories: namely, agency theory; and resource dependence theory. Design/methodology/approach - The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell, 2011) to integrate quantitative and qualitative data. Findings - It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles; they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification, and foreign directors.Theoretical and practical implications - The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value - The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

KW - corporate governance

KW - board of director

KW - board characteristics

KW - firm performance

KW - Tanzania

U2 - 10.1108/CG-09-2016-0174

DO - 10.1108/CG-09-2016-0174

M3 - Article

JO - Corporate Governance: The International Journal of Business in Society

JF - Corporate Governance: The International Journal of Business in Society

SN - 1472-0701

ER -

ID: 10100237