Board characteristics and performance of East Africa companies
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Date
2020
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Springer
Abstract
In the management of agency problems, the board of directors is an essential tool for monitoring the activities of the managers. The board of directors has specific characteristics associated with its effectiveness and efficiency, which can be transformed into the general performance of the company. This study aimed at providing evidence regarding the characteristics possessed by the East Africa community companies’ board of directors and their influence on the companies performance. Simultaneous system of equations and annual data from 16 companies for a period between 2003 and 2017 was used in the study. The study observed that the market performance measures to be highly influenced by the changes in the characteristics of the board such as board size, the proportion of women, proportion of independent directors and proportion of foreign directors. On the other hand, the account performance measures were less influenced by the board characteristics, and only ROE was more associated with the changes on board characteristics. During this period, the market was more overwhelmed by new information regarding the board characteristics as compared to the performance of the account measures.
Description
Abstract. Full text book chapter available at https://doi.org/10.1007/978-3-030-43078-8_11
Keywords
Management, Board characteristics, East Africa companies, Directors, Agency problem, Directors board
Citation
Mwamtambulo, D. J. (2020). Board characteristics and performance of East Africa companies. in contemporary trends and challenges in finance (pp. 125-146). Springer, Cham.