The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan

Almontaser Abdallah Mohammad Qadorah; Faudziah Hanim Bt Fadzil

doi:doi:10.11648/j.jfa.20180605.11

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The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan

Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil

Received: 19 September 2018 Accepted: 9 October 2018 Published: 29 October 2018

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Abstract

The purpose of this study to examine the relationship between the internal corporate governance mechanism related to the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance in Jordanian listed firms. The study used Cross-sectional data for the year 2013, with a sample of 64 industrial firms listed in the Amman Stock Exchange. Firm performance was measured by return on assets (ROA) as an accounting-based performance measure. The current study utilized multiple linear regression analysis to test the hypotheses and examine the relationship between the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance. The findings showed that board independence is significantly and positively related to ROA. The current study found an insignificant relationship between the frequency of board meetings and firm performance measured by ROA. These results indicate that the monitoring role of the more independent board could have a significant influence on firm performance. Contradictory to expectation, the result of this study reveals that the frequency of board meetings do not determine the performance of industrial Jordanian firms. Further, Current study findings provide the idea to future researchers for further empirically explore the importance of the board of director's characteristics in Jordan. This study provides several important implications for the theory, regulatory authorities and policy makers and academia and researchers.

DOI	10.11648/j.jfa.20180605.11
Published in	Journal of Finance and Accounting (Volume 6, Issue 5, September 2018)
Page(s)	105-109
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Corporate Governance, Board of Director’s Independence, Board Meeting, Firm Performance

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APA Style

Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil. (2018). The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan. Journal of Finance and Accounting, 6(5), 105-109. https://doi.org/10.11648/j.jfa.20180605.11

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ACS Style

Almontaser Abdallah Mohammad Qadorah; Faudziah Hanim Bt Fadzil. The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan. J. Finance Account. 2018, 6(5), 105-109. doi: 10.11648/j.jfa.20180605.11

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AMA Style

Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil. The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan. J Finance Account. 2018;6(5):105-109. doi: 10.11648/j.jfa.20180605.11

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@article{10.11648/j.jfa.20180605.11,
  author = {Almontaser Abdallah Mohammad Qadorah and Faudziah Hanim Bt Fadzil},
  title = {The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {5},
  pages = {105-109},
  doi = {10.11648/j.jfa.20180605.11},
  url = {https://doi.org/10.11648/j.jfa.20180605.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180605.11},
  abstract = {The purpose of this study to examine the relationship between the internal corporate governance mechanism related to the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance in Jordanian listed firms. The study used Cross-sectional data for the year 2013, with a sample of 64 industrial firms listed in the Amman Stock Exchange. Firm performance was measured by return on assets (ROA) as an accounting-based performance measure. The current study utilized multiple linear regression analysis to test the hypotheses and examine the relationship between the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance. The findings showed that board independence is significantly and positively related to ROA. The current study found an insignificant relationship between the frequency of board meetings and firm performance measured by ROA. These results indicate that the monitoring role of the more independent board could have a significant influence on firm performance. Contradictory to expectation, the result of this study reveals that the frequency of board meetings do not determine the performance of industrial Jordanian firms. Further, Current study findings provide the idea to future researchers for further empirically explore the importance of the board of director's characteristics in Jordan. This study provides several important implications for the theory, regulatory authorities and policy makers and academia and researchers.},
 year = {2018}
}

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TY  - JOUR
T1  - The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan
AU  - Almontaser Abdallah Mohammad Qadorah
AU  - Faudziah Hanim Bt Fadzil
Y1  - 2018/10/29
PY  - 2018
N1  - https://doi.org/10.11648/j.jfa.20180605.11
DO  - 10.11648/j.jfa.20180605.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 105
EP  - 109
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180605.11
AB  - The purpose of this study to examine the relationship between the internal corporate governance mechanism related to the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance in Jordanian listed firms. The study used Cross-sectional data for the year 2013, with a sample of 64 industrial firms listed in the Amman Stock Exchange. Firm performance was measured by return on assets (ROA) as an accounting-based performance measure. The current study utilized multiple linear regression analysis to test the hypotheses and examine the relationship between the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance. The findings showed that board independence is significantly and positively related to ROA. The current study found an insignificant relationship between the frequency of board meetings and firm performance measured by ROA. These results indicate that the monitoring role of the more independent board could have a significant influence on firm performance. Contradictory to expectation, the result of this study reveals that the frequency of board meetings do not determine the performance of industrial Jordanian firms. Further, Current study findings provide the idea to future researchers for further empirically explore the importance of the board of director's characteristics in Jordan. This study provides several important implications for the theory, regulatory authorities and policy makers and academia and researchers.
VL  - 6
IS  - 5
ER  -

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Author Information

Almontaser Abdallah Mohammad Qadorah

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia
Faudziah Hanim Bt Fadzil

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia

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APA Style

Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil. (2018). The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan. Journal of Finance and Accounting, 6(5), 105-109. https://doi.org/10.11648/j.jfa.20180605.11

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ACS Style

Almontaser Abdallah Mohammad Qadorah; Faudziah Hanim Bt Fadzil. The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan. J. Finance Account. 2018, 6(5), 105-109. doi: 10.11648/j.jfa.20180605.11

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AMA Style

Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil. The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan. J Finance Account. 2018;6(5):105-109. doi: 10.11648/j.jfa.20180605.11

Copy | Download

@article{10.11648/j.jfa.20180605.11,
  author = {Almontaser Abdallah Mohammad Qadorah and Faudziah Hanim Bt Fadzil},
  title = {The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {5},
  pages = {105-109},
  doi = {10.11648/j.jfa.20180605.11},
  url = {https://doi.org/10.11648/j.jfa.20180605.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180605.11},
  abstract = {The purpose of this study to examine the relationship between the internal corporate governance mechanism related to the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance in Jordanian listed firms. The study used Cross-sectional data for the year 2013, with a sample of 64 industrial firms listed in the Amman Stock Exchange. Firm performance was measured by return on assets (ROA) as an accounting-based performance measure. The current study utilized multiple linear regression analysis to test the hypotheses and examine the relationship between the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance. The findings showed that board independence is significantly and positively related to ROA. The current study found an insignificant relationship between the frequency of board meetings and firm performance measured by ROA. These results indicate that the monitoring role of the more independent board could have a significant influence on firm performance. Contradictory to expectation, the result of this study reveals that the frequency of board meetings do not determine the performance of industrial Jordanian firms. Further, Current study findings provide the idea to future researchers for further empirically explore the importance of the board of director's characteristics in Jordan. This study provides several important implications for the theory, regulatory authorities and policy makers and academia and researchers.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - The Effect of Board Independence and Board Meeting on Firm Performance: Evidence from Jordan
AU  - Almontaser Abdallah Mohammad Qadorah
AU  - Faudziah Hanim Bt Fadzil
Y1  - 2018/10/29
PY  - 2018
N1  - https://doi.org/10.11648/j.jfa.20180605.11
DO  - 10.11648/j.jfa.20180605.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 105
EP  - 109
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180605.11
AB  - The purpose of this study to examine the relationship between the internal corporate governance mechanism related to the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance in Jordanian listed firms. The study used Cross-sectional data for the year 2013, with a sample of 64 industrial firms listed in the Amman Stock Exchange. Firm performance was measured by return on assets (ROA) as an accounting-based performance measure. The current study utilized multiple linear regression analysis to test the hypotheses and examine the relationship between the board of directors’ characteristics namely (board independence and frequency of board meetings) and firm performance. The findings showed that board independence is significantly and positively related to ROA. The current study found an insignificant relationship between the frequency of board meetings and firm performance measured by ROA. These results indicate that the monitoring role of the more independent board could have a significant influence on firm performance. Contradictory to expectation, the result of this study reveals that the frequency of board meetings do not determine the performance of industrial Jordanian firms. Further, Current study findings provide the idea to future researchers for further empirically explore the importance of the board of director's characteristics in Jordan. This study provides several important implications for the theory, regulatory authorities and policy makers and academia and researchers.
VL  - 6
IS  - 5
ER  -

Copy | Download