THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION
The impact of the board of directors (BOD) on the performance of companies, particularly considering the moderating role of ownership concentration (OC), is a topic of significant importance in the realm of corporate governance (Habtoor, 2020). The study employs structural equation modelling (SEM),...
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Virtus Interpress
2025
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| _version_ | 1833410957085245440 |
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| author | Hyarat H.I. Husin N.M. Jos R.A.G. |
| author2 | 58244510200 |
| author_facet | 58244510200 Hyarat H.I. Husin N.M. Jos R.A.G. |
| author_sort | Hyarat H.I. |
| building | UNITEN Library |
| collection | Institutional Repository |
| content_provider | Universiti Tenaga Nasional |
| content_source | UNITEN Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | The impact of the board of directors (BOD) on the performance of companies, particularly considering the moderating role of ownership concentration (OC), is a topic of significant importance in the realm of corporate governance (Habtoor, 2020). The study employs structural equation modelling (SEM), a more advanced method, to address causality and endogeneity issues in governance-performance relationships (Hamid & Purbawangsa, 2022). The hypotheses are constructed based on resource dependence and agency theories, enhancing the theoretical framework. The research focuses on Jordanian service and industrial firms listed on the Amman Stock Exchange (ASE) from 2014 to 2018, encompassing 92 firms and 460 observations. Based on the estimated results, the study confirms that the size of the board, CEO duality, and board independence, including OC, all have a positive effect on firm performance. The results also show that the BOD has a statistically significant impact on firm performance when considering the moderating impact of OC. However, the study finds that CEO duality and board independence have an insignificant impact on return on assets (ROA). This study contributes to the literature on BOD and firm performance and provides insights for practitioners and policymakers. ? 2024 The Authors. |
| format | Article |
| id | my.uniten.dspace-37083 |
| institution | Universiti Tenaga Nasional |
| publishDate | 2025 |
| publisher | Virtus Interpress |
| record_format | dspace |
| spelling | my.uniten.dspace-370832025-03-03T15:47:18Z THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION Hyarat H.I. Husin N.M. Jos R.A.G. 58244510200 55152658600 58244183700 The impact of the board of directors (BOD) on the performance of companies, particularly considering the moderating role of ownership concentration (OC), is a topic of significant importance in the realm of corporate governance (Habtoor, 2020). The study employs structural equation modelling (SEM), a more advanced method, to address causality and endogeneity issues in governance-performance relationships (Hamid & Purbawangsa, 2022). The hypotheses are constructed based on resource dependence and agency theories, enhancing the theoretical framework. The research focuses on Jordanian service and industrial firms listed on the Amman Stock Exchange (ASE) from 2014 to 2018, encompassing 92 firms and 460 observations. Based on the estimated results, the study confirms that the size of the board, CEO duality, and board independence, including OC, all have a positive effect on firm performance. The results also show that the BOD has a statistically significant impact on firm performance when considering the moderating impact of OC. However, the study finds that CEO duality and board independence have an insignificant impact on return on assets (ROA). This study contributes to the literature on BOD and firm performance and provides insights for practitioners and policymakers. ? 2024 The Authors. Final 2025-03-03T07:47:18Z 2025-03-03T07:47:18Z 2024 Article 10.22495/jgrv13i1art22 2-s2.0-85185146461 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85185146461&doi=10.22495%2fjgrv13i1art22&partnerID=40&md5=0a62b1e596068a8bb08679344d7e451c https://irepository.uniten.edu.my/handle/123456789/37083 13 1 241 252 All Open Access; Gold Open Access Virtus Interpress Scopus |
| spellingShingle | Hyarat H.I. Husin N.M. Jos R.A.G. THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION |
| title | THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION |
| title_full | THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION |
| title_fullStr | THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION |
| title_full_unstemmed | THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION |
| title_short | THE IMPACT OF THE BOARD OF DIRECTORS ON COMPANIES? PERFORMANCE: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION |
| title_sort | impact of the board of directors on companies? performance: the moderating role of ownership concentration |
| url_provider | http://dspace.uniten.edu.my/ |