Abstract
Many empirical studies have been conducted to test the impact of the characteristics of board of directors on the performance of stock exchange listed companies in developed countries and emerging countries. There are no abundant literature on the impact of independence and Chief Executive Officer (CEO) duality on corporate performance in Cote d'Ivoire. Cote d'Ivoire is a developing country and according the International Monetary Fund (IFM), one of the three biggest economies in West Africa. Analyzes of developed economies are an example for developing economies countries and more a road map for poor countries to the development. However analyzes of the economies of developing or poor countries constitute a diagnostic and motivation to better lead these countries’ economies to the development. The aim of this study is to determine the effect of the board of directors’ characteristics on the performance of non-financial companies in Cote d'Ivoire. In particular, we focused on the analysis of three characteristics: board size, board independence and the duality of the CEO. Our empirical study has been conducted on a sample of 25 non-financial listing companies for a period from 2002 to 2016 using multiple regression analysis. The modeling was carried out after controlling multi-colinearity and correlation test by using the Hausman specific test, heteroskedasticity test. By controlling variables such as firm size, board meeting and leverage, our empirical results show a positive impact of board size on firm’s performance. It is also found that board independence has a negative effect, while CEO duality has a positive effect on financial performance proxied by ROA. However, when performance is measure by ROE, board independence has a positive effect, while CEO duality has a negative effect. Keywords : Board of Directors, Corporate Performance, Board Size, Board Independence, CEO Duality. DOI: 10.7176/JESD/12-12-04 Publication date: June 30 th 2021
Highlights
Board of directors is the one of corporate governance mechanism which resulting from general term governance
It is worth noting that table 2has firm’s performance measures that are the return on assets (ROA) and the return on equity (ROE) measure, and all of explicative variables of the model are from Cote d'Ivoire listed non- financial companies
Column ROA representing the results of the regression from equation (1) where firm's performance was measuring by ROA and column ROE represents regression results from equation (2) where firm's performance was measuring by ROE
Summary
Board of directors is the one of corporate governance mechanism which resulting from general term governance. For that this first chapter reviewed a theoretical corporate governance and a theoretical background of board of directors by exhibiting the objectives of this study, research questions and hypothesis, and the innovations of this study. Nowadays it is absolutely impossible to talk about board of directors without defining corporate governance because these two concepts go hand in hand. It comes back to us by the English "governance" during the 90s on a concept rather complex and still quite abstract . Governance is sometimes-controversial concept, because defined in diverse and sometimes contradictory way
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