Original Research
Board composition, board size and financial performance of Johannesburg stock exchange companies
Submitted: 18 March 2015 | Published: 25 November 2016
About the author(s)
Munyradadzi Raymond Muchemwa, School of Accountancy, University of the Witwatersrand, South AfricaNirupa Padia, School of Accountancy, University of the Witwatersrand, South Africa
Chris William Callaghan, School of Economic and Business Sciences, University of the Witwatersrand, South Africa
Full Text:
PDF (402KB)Abstract
On the basis of agency theory and resource dependence theory, as well as other corporate governance literature, it is predicted that board composition measured as the ratio of non-executive to executive board members and the number of directors on a firm’s board can be positively related to firm performance. This study seeks to test the predictions of this body of theory and to investigate the form of the empirical relationships among these effects. In so doing, this study tests theory that relates these variables in the context of a developing country, using data from South Africa’s Johannesburg Stock Exchange, over a seven-year period, 2006–2012.
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