Board structure and financial performance in the logistics sector: Do contingencies matter?

Abstract

Drawing on agency, stewardship, and contingency theories, this study examined whether board structure is associated with corporate financial performance and—if so—whether firm size and leverage (i.e., contingencies) moderate this association in the logistics sector. Hence, the study aimed to provide implications for board configuration and performance enhancement at varying levels of firm size and leverage. The data were retrieved from the Thomson Reuters Eikon database, and the generalized method of moments (GMM) estimator was applied to these data. The results revealed that while independent directors augment corporate financial performance, female directors and chief executive officer (CEO) duality do not. The first moderation analysis concerning firm size indicated that women drive firm performance in neither large nor small firms with the exception of sales revenues, which they improve in large firms. Independent directors, on the other hand, were shown to drive firm performance in larger firms. CEO duality was revealed to be particularly influential in boosting sales revenues in large logistics firms. The second moderation analysis detected no disciplinary effect of leverage on board structure in the logistics sector. Based on the findings, theoretical, managerial, and policymaking implications are suggested for the logistics sector.