The Relationship Between Board Size and CEO Duality and Firm Performance: Evidence from Jordan
International Journal of Accounting, Finance and Risk Management
Volume 3, Issue 3, September 2018, Pages: 16-20
Received: Sep. 16, 2018; Accepted: Oct. 12, 2018; Published: Nov. 7, 2018
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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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Previous studies that dealt with corporate governance have witnessed gradually significant growth that created some new trends. This paper aims to be involved in such trends through examining the link between board size and CEO duality as one of the important corporate governance mechanisms and firm performance in Jordan as one of emerging economies. The current study used the multiple regression method to analyze available data for a sample of 64 industrial firms listed in the Amman Stock Exchange (ASE) for the fiscal year 2013. The findings revealed that board size has a positive impact on performance. On the other hand, the findings surprisingly showed evidence to support the impact of CEO duality on performance. The practical implications of the current study demonstrated that good corporate governance is imperative to all organizations and must be encouraged for the interest of all stakeholders. Same as the majority of the previous studies, the current study expectedly found that CEO duality is significantly contributing to the firm performance. In that, this study is the first study in emerging economies to investigate such a link. Such new insights on this relationship by current study provide helpful information that is of great value to the government, academics, policy makers, and other stakeholders.
Corporate Governance, Board of Directors Size, CEO Duality, Firm Financial Performance
To cite this article
Almontaser Abdallah Mohammad Qadorah, Faudziah Hanim Bt Fadzil, The Relationship Between Board Size and CEO Duality and Firm Performance: Evidence from Jordan, International Journal of Accounting, Finance and Risk Management. Vol. 3, No. 3, 2018, pp. 16-20. doi: 10.11648/j.ijafrm.20180303.11
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