Abstract

This article employed multiple regression analysis to investigate the variables that significantly determine the effectiveness of the board of directors in listed companies in the Middle East with a particular focus on the United Arab Emirates (UAE). This empirical study revealed significant links between board and shareholder characteristics and company performance as measured by the price-earnings ratio. Board processes and the presence of private institutional investors proves to be the central factors for board effectiveness. The structural aspects of the board such as size and composition are shown not to be significant for shaping board output.

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