We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Board Attributes and Firm Value: The Moderating Role of Board Meeting Frequency.
- Authors
Mili, Shamem Ara; Hashim, Fathyah
- Abstract
Purpose: The aim of this research is to look at the relationship of board attributes to firm value. This research adopts board size (BS) and board independence (BI) as board attributes. Most importantly, the study investigates whether board meeting frequency (BMF) moderates board size and board independence in improving firm value (FV). Design/methodology/approach: This research uses a panel dataset over a period of 4 years, i.e., 2016-17 to 2019-2020 of 23 selected engineering companies listed on Dhaka Stock Exchange Ltd. (DSE) of Bangladesh. The study adopts panel data regression model to test the undertaken hypotheses using two econometric models. After passing several diagnostic tests and model selection tests, random effect model has been used for examining the econometric model 1, and fixed effect model for examining the econometric model 2. The study adopts Tobin’s Q ratio as the proxy of firm value, total number of directors on a corporate board as board size, proportion of total number of independent director(s) as relation to total number of directors on a corporate board as board independence, and total number of board meetings held in a year by a firm as board meeting frequency. The research also performs a number of robustness tests through using alternate regression methods, along with alternate proxy of firm value for further confirmation of the empirical findings. Findings: The study finds that BS has positive insignificant relationship to FV, whereas BI has negative significant relationship to FV. Further, the study documents that board meeting frequency moderate the association of BS and BI to firm value. It is evident that the interaction impact of BS and board meeting frequency has negative significant association with FV, while the interaction impact of BI and board meeting frequency has positive significant association with FV. Research limitations/implications: This research only focuses on engineering companies listed on DSE of Bangladesh. Besides, it only considers a few board attributes, i.e., BS, BI, and BMF. Thus, there is further scope to examine other board attributes on firm value in the same context. Practical implications: The results generated from this study will be a policy dialogue for the decision makers of business firms in Bangladesh as well as the similar economies. Originality/value: The major contribution of this research is that it tests both individual effects as well as moderating impacts of board attributes on firm value in the setting of an emerging economy like Bangladesh.
- Subjects
BANGLADESH; CORPORATE meetings; FIXED effects model; ENTERPRISE value; RANDOM effects model; ENGINEERING firms; CORPORATE directors; ECONOMETRIC models
- Publication
Global Business & Management Research, 2023, Vol 15, p337
- ISSN
1947-5667
- Publication type
Article