Studies have reported valuation discounts for publicly traded companies based in countries that provide weak legal protection minority shareholders.1 Such are often attributed to the ability of controlling shareholders extract “private benefits” come at expense shareholders. Without sufficient deterrents, both incentive and transfer corporate resources themselves personal consumption or gain. T...

The purpose of this paper is to study the determinants of the presence of independent directors on boards of directors. Based on the agency theory, we study the different factors influencing the nomination of independent directors. The tests were applied to a sample of 79 companies belonging to the SBF120 index from 1999 to 2001. Using an OLS data regression framework, the findings show that th...

We examine whether firms pursue target board structures. Using a broad panel from 1991–2003, we find that board changes are frequent, with two-thirds of firms changing board size or independence during a two-year period. Board changes are associated with changes in firm-specific fundamentals. The rate of change is positively associated with the benefits of effective boards and negatively associ...

When a CEO holds the title of Chairman of the Board, the board has the formal authority, but the CEO often holds the leadership. This paper shows that if the board is not independent enough to discipline a CEO, it is optimal for the board to take leadership by separating the titles. However, the board (or shareholders) is better-off if it can increase its independence without separating the tit...

This study examines the effect of institutional governance on financial performance National Microfinance Banks (NMFBs) inNigeria for period 2016 to 2021. Institutional was proxy by Board characteristics such as board size, independence, gender diversity, and audit committee size while measured returns assets (ROA). The adopts a descriptive research design panel multiple regression used test hy...