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Board Characteristics and Firm Performance Among Kuwaiti Companies

The issue revolving around corporate governance has always been an essential and critical element for both private and public sectors particularly in Kuwait. Kuwait's Prime Minister has even stressed for more concentration on the issues of governance for the purpose of overseeing the effective...

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Main Author: Al-Matari, Ebrahim Mohameed Ayadh
Format: Thesis
Language:English
English
Published: 2011
Subjects:
HD Industries. Land use. Labor.
Online Access:https://etd.uum.edu.my/2898/1/Ebrahim_Mohameed_Ayedh_Al-Matari.pdf
https://etd.uum.edu.my/2898/2/1.Ebrahim_Mohameed_Ayedh_Al-Matari.pdf
https://etd.uum.edu.my/2898/
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spelling my.uum.etd.28982022-04-11T06:17:50Z https://etd.uum.edu.my/2898/ Board Characteristics and Firm Performance Among Kuwaiti Companies Al-Matari, Ebrahim Mohameed Ayadh HD Industries. Land use. Labor. The issue revolving around corporate governance has always been an essential and critical element for both private and public sectors particularly in Kuwait. Kuwait's Prime Minister has even stressed for more concentration on the issues of governance for the purpose of overseeing the effective running of the public and private sector through a check and balance system. Moreover, the Prime Minister argued the need of the firms in the country to benchmark to an effective system that emphasizes on positive issues such as ethics, openness, accountability, transparency, and integrity in the public and private sector. Therefore, this crucial issue has to be addressed accordingly in order to enhance the performance of firms. It has been generally believed that good corporate governance is a critical factor in the improvement of firm value in both developing and developed financial markets. However, this belief overlooked the fact that the relationship between corporate governance and the value of a firm varies in developing and developed financial markets owing to the character of the corporate governance structures existing in the markets based on dissimilar social, economic and regulatory conditions. This reality calls for the need to examine and comprehend the differences affecting the firm value for the purpose of academic, financial and management practices and public regulation of markets and corporations. The core aim of the present study is the examination of the relationship between board characteristics and firm performance of non-financial, listed Kuwaiti firms on the Kuwaiti stock exchange. For the purpose of the study, data was collected from a sample of 136 companies for the financial year of 2009. Among corporate governance's various variables, five were chosen to be included in the study namely CEO duality, COE tenure, audit committee size, board size and board composition and one measures namely return on assets (ROA) was chosen as measures of firm performance. Furthermore, regression analysis was utilized for the examination of the relationship between board characteristics and firm performance. The result indicates that the relationship between CEO duality and ROA is positive in the significant level. Therefore, this result found that the relationship between CEO tenure and ROA is negative in the significant level. By contrast, this result found that the relationship between audit committee size with ROA is positive with significant level. In addition to that, this result found that the relationship between board size and board composition is negative but not significant. Furthermore, this study using firm size and leverage as a control variables found that the relationship between firm size and ROA is positively insignificant. Finally, the outcome of the relationship between leverage and ROA is negatively significant. 2011-06 Thesis NonPeerReviewed text en https://etd.uum.edu.my/2898/1/Ebrahim_Mohameed_Ayedh_Al-Matari.pdf text en https://etd.uum.edu.my/2898/2/1.Ebrahim_Mohameed_Ayedh_Al-Matari.pdf Al-Matari, Ebrahim Mohameed Ayadh (2011) Board Characteristics and Firm Performance Among Kuwaiti Companies. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HD Industries. Land use. Labor.
spellingShingle HD Industries. Land use. Labor.
Al-Matari, Ebrahim Mohameed Ayadh
Board Characteristics and Firm Performance Among Kuwaiti Companies
description The issue revolving around corporate governance has always been an essential and critical element for both private and public sectors particularly in Kuwait. Kuwait's Prime Minister has even stressed for more concentration on the issues of governance for the purpose of overseeing the effective running of the public and private sector through a check and balance system. Moreover, the Prime Minister argued the need of the firms in the country to benchmark to an effective system that emphasizes on positive issues such as ethics, openness, accountability, transparency, and integrity in the public and private sector. Therefore, this crucial issue has to be addressed accordingly in order to enhance the performance of firms. It has been generally believed that good corporate governance is a critical factor in the improvement of firm value in both developing and developed financial markets. However, this belief overlooked the fact that the relationship between corporate governance and the value of a firm varies in developing and developed financial markets owing to the character of the corporate governance structures existing in the markets based on dissimilar social, economic and regulatory conditions. This reality calls for the need to examine and comprehend the differences affecting the firm value for the purpose of academic, financial and management practices and public regulation of markets and corporations. The core aim of the present study is the examination of the relationship between board characteristics and firm performance of non-financial, listed Kuwaiti firms on the Kuwaiti stock exchange. For the purpose of the study, data was collected from a sample of 136 companies for the financial year of 2009. Among corporate governance's various variables, five were chosen to be included in the study namely CEO duality, COE tenure, audit committee size, board size and board composition and one measures namely return on assets (ROA) was chosen as measures of firm performance. Furthermore, regression analysis was utilized for the examination of the relationship between board characteristics and firm performance. The result indicates that the relationship between CEO duality and ROA is positive in the significant level. Therefore, this result found that the relationship between CEO tenure and ROA is negative in the significant level. By contrast, this result found that the relationship between audit committee size with ROA is positive with significant level. In addition to that, this result found that the relationship between board size and board composition is negative but not significant. Furthermore, this study using firm size and leverage as a control variables found that the relationship between firm size and ROA is positively insignificant. Finally, the outcome of the relationship between leverage and ROA is negatively significant.
format Thesis
author Al-Matari, Ebrahim Mohameed Ayadh
author_facet Al-Matari, Ebrahim Mohameed Ayadh
author_sort Al-Matari, Ebrahim Mohameed Ayadh
title Board Characteristics and Firm Performance Among Kuwaiti Companies
title_short Board Characteristics and Firm Performance Among Kuwaiti Companies
title_full Board Characteristics and Firm Performance Among Kuwaiti Companies
title_fullStr Board Characteristics and Firm Performance Among Kuwaiti Companies
title_full_unstemmed Board Characteristics and Firm Performance Among Kuwaiti Companies
title_sort board characteristics and firm performance among kuwaiti companies
publishDate 2011
url https://etd.uum.edu.my/2898/1/Ebrahim_Mohameed_Ayedh_Al-Matari.pdf
https://etd.uum.edu.my/2898/2/1.Ebrahim_Mohameed_Ayedh_Al-Matari.pdf
https://etd.uum.edu.my/2898/
_version_ 1731228123054211072
score 13.211869

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