Corporate boards and performance of Asian firms: A meta-analysis
Journal
Asia Pacific Journal of Management
ISSN
0217-4561
ISSN-Digital
1572-9958
Type
journal article
Date Issued
2012-12
Author(s)
Abstract
The prevalence of ownership concentration in Asian firms presents a
challenge to the influential agency theory-based understanding of the role of corporate boards. In this paper we develop and test hypotheses about board attributes and firm performance that reflect Asian institutional conditions. We present the first meta-analysis of the relationship between board attributes and performance of Asian firms using a varied set of meta-analytical techniques on a database of 86 studies covering nine Asian countries. First, we find that board structure and composition preferences are influenced by the identity of the concentrated owner. Second, consistent with US data, we find very limited evidence of a direct relationship between board attributes and firm financial performance in the Asian context. Third, we find that the relationship between board structure and composition and firm performance is mediated by the revealed strategic preferences of Asian firms specifically by the level of R&D investment.
challenge to the influential agency theory-based understanding of the role of corporate boards. In this paper we develop and test hypotheses about board attributes and firm performance that reflect Asian institutional conditions. We present the first meta-analysis of the relationship between board attributes and performance of Asian firms using a varied set of meta-analytical techniques on a database of 86 studies covering nine Asian countries. First, we find that board structure and composition preferences are influenced by the identity of the concentrated owner. Second, consistent with US data, we find very limited evidence of a direct relationship between board attributes and firm financial performance in the Asian context. Third, we find that the relationship between board structure and composition and firm performance is mediated by the revealed strategic preferences of Asian firms specifically by the level of R&D investment.
Language
English
Keywords
Meta-analysis . Meta-analytical structural equations modeling .
Board of directors . Ownership concentration . Owner identity . Firm performance
Board of directors . Ownership concentration . Owner identity . Firm performance
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Springer US
Volume
29
Number
4
Start page
873
End page
905
Pages
33
Subject(s)
Eprints ID
244563