Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa

Dheseviano Emiaso; Gloria Ogochukwu Okafor

doi:doi:10.11648/j.jfa.20231103.16

| Peer-Reviewed

Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa

Dheseviano Emiaso, Gloria Ogochukwu Okafor

Published in Journal of Finance and Accounting (Volume 11, Issue 3)

Received: 2 May 2023 Accepted: 14 June 2023 Published: 27 June 2023

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the association between board independence and financial performance of listed non-financial companies in Sub-Saharan Africa, this study also investigated the relationship between board dynamics and corporate performance. Since the study used an ex post facto research design, secondary sources were used to collect the data. All listed non-financial firms in Sub-Saharan Africa made up the study's population. The study found a positive but non-significant link between board size, board independence, and CEO power and firm financial performance utilising financial statement statistics and exploratory factors in a regression model. The study's findings also suggest that the CEO's influence reduces the association between board independence and corporate financial performance. Therefore, the study draws the conclusion that board dynamics affects the corporate financial performance of listed non-financial corporations in Sub-Saharan Africa. It also makes several recommendations, such that companies adopt a manageable board size in order to enhance corporate financial performance.

Published in	Journal of Finance and Accounting (Volume 11, Issue 3)
DOI	10.11648/j.jfa.20231103.16
Page(s)	107-112
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Board Size, Board Independence, CEO Power, Non-Financial Firms, Sub-Sahara Africa

References

[1]	Adefemi F., Hassan A. and Fletcher M. (2017). The impact of corporate governance disclosure on firm performance. International Research Journal of Business Studies, 11 (2), 67-80.
[2]	Adetunji B. and Olawoye O. (2009). The effects of internal and external mechanism on governance and performance of corporate firms in Nigeria. Corporate ownership & control /7 (2)–3330.
[3]	Appah E. and Tebepah S. F. (2020). Audit Committee Attributes and Reporting Lag of Listed Consumer Goods Firms in Nigeria. International Journal of Economics and Financial Management, 5 (2), 48-66.
[4]	Defond M., Rebecca N. and Xuesong Hu. (2005). Does the market value financial expertise on board characteristics of boards of directors? Journal of Accounting Research. 43 (2), 153.
[5]	Fama E. F. and Jensen M. C. (1983). Separation of Ownership and Control. Source: Journal of Law and Economics, 26 (2), 301-325.
[6]	Fauzil F. and Locke L. (2012). The role of board structure and the effect of ownership structures on firm performance. Asian Academy of Management Journal of Accounting and Finance, 8 (2), 43-67.
[7]	Ibe H. C. A., Ugwuanyi G. O. and Okanya O. C. (2017). The effect of corporate governance on financial performance of Insurance companies in Nigeria. Journal of Finance and Accounting. 5 (3), 93-103.
[8]	Jedi F. F. and Nayan S. (2018). The Effect of Oil Price Volatility, Board of Directors Characteristics on Firm Performance of Iraq Listed Companies: A Conceptual Framework. International Journal of Economics and Financial Issues, 8 (5), 342-350.
[9]	Johl S. K., Kaur S. and Cooper B. (2015). The impact of board characteristics and firm performance. Journal of Economics, Business and Management. 3 (2), 239-243.
[10]	Kajola S. O (2008). Corporate Governance and Firm Performance: the Case of Nigerian Listed Firm. European journal of Economics, Finance and Administrative Science, ISSN 1450-2275 issue 14.
[11]	Kakabadse N. K., Yang H. and Sanders R. (2010). The effectiveness of non-executive directors in China. Management Decision, 48 (7), 1063-1079.
[12]	Kwanbo M. L. and Abdul-Qadir A. B. (2013) The impact of board composition on the performance of banks considered healthy by the Central Bank of Nigeria. International Journal of Academic Research in Economics and Management Sciences, 2 (1), 109-122.
[13]	Lindorff M., Jonson E. P. (2013). CEO business education and firm financial performance: A case for humility rather than hubris. Education Training, 55 (4/5), 461-477.
[14]	Mahadeo J. D., Soobaroyen T. and Hanuman V. O. (2012). Board composition and financial performance: Uncovering the effects of diversity in an emerging economy. Journal of Business Ethics, 105 (3), 375-388.
[15]	Masum M. H. and Khan M. M. (2019). Impacts of Board Characteristics on Corporate Performance: Evidence from Bangladeshi Listed Companies. International Business and Accounting Research Journal, 3 (1).
[16]	Modum C., Ugwoke S, and Onyeanu M. (2013). Auditor opinion shopping and the audit committee: an analysis of suspicious auditors witches. International journal of auditing, 5 (1), 33–52.
[17]	Ogbeide S. O. (2018) Empirical assessment of female directors representation in the Nigerian listed companies. International Journal of Research Studies in Management, 7 (2), 47-56.
[18]	Okaro S. C., Ofoegbu G. N. and Okafor G. O. (2018) Corporate governance and sustainable development in Nigeria-Perspectives and Challenges. International Journal of Academic Research in Business and Social Sciences, 8 (9), 90-104.
[19]	Otuya S., Akporien F. and Ofeimun G. (2019). Influence of companies’ governance process on sustainability reporting. International Journal of Applied Economics, Finance and Accounting, 5 (1), 31-38.
[20]	Ramadan E. (2014). Board of Directors and Tobin’s Q: Evidence from U.K. Firms. Journal of Finance and Accounting. 2 (4), 82-99.
[21]	Saat N. A. M., Karbhari Y., Heravi S. and Nassir A. M. (2011). Effective Oversight Roles of Board of Directors –The Case of Listed Firms on Bursa Malaysia. World Review of Business Research, 1 (1), 231-245.
[22]	Vafeas N. (1999). Board Meeting Frequency and Firm Performance. Journal of Financial Economics, 53, 113-142 http://dx.doi.org/10.1016/S0304-405X(99)00018-5
[23]	Vo D. H. and Nguyen T. M. (2014). The impact of corporate governance on firm performance: Empirical study in Vietnam. International Journal of Economics and Finance, 6 (6), 1-13.
[24]	Zabojaikova G. (2016). The effects of board composition and direct incentives on firm performance. Financial management, 20 (4), 101-12.
[25]	Zied E. (2012). Corporate board performance: an investigation of the consequences associated with board characteristics Auditing Journal of practice and theory, l (15), 87-103.

Cite This Article

Plain Text BibTeX RIS

APA Style

Dheseviano Emiaso, Gloria Ogochukwu Okafor. (2023). Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa. Journal of Finance and Accounting, 11(3), 107-112. https://doi.org/10.11648/j.jfa.20231103.16

Copy | Download

ACS Style

Dheseviano Emiaso; Gloria Ogochukwu Okafor. Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa. J. Finance Account. 2023, 11(3), 107-112. doi: 10.11648/j.jfa.20231103.16

Copy | Download

AMA Style

Dheseviano Emiaso, Gloria Ogochukwu Okafor. Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa. J Finance Account. 2023;11(3):107-112. doi: 10.11648/j.jfa.20231103.16

Copy | Download

@article{10.11648/j.jfa.20231103.16,
  author = {Dheseviano Emiaso and Gloria Ogochukwu Okafor},
  title = {Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa},
  journal = {Journal of Finance and Accounting},
  volume = {11},
  number = {3},
  pages = {107-112},
  doi = {10.11648/j.jfa.20231103.16},
  url = {https://doi.org/10.11648/j.jfa.20231103.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20231103.16},
  abstract = {The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the association between board independence and financial performance of listed non-financial companies in Sub-Saharan Africa, this study also investigated the relationship between board dynamics and corporate performance. Since the study used an ex post facto research design, secondary sources were used to collect the data. All listed non-financial firms in Sub-Saharan Africa made up the study's population. The study found a positive but non-significant link between board size, board independence, and CEO power and firm financial performance utilising financial statement statistics and exploratory factors in a regression model. The study's findings also suggest that the CEO's influence reduces the association between board independence and corporate financial performance. Therefore, the study draws the conclusion that board dynamics affects the corporate financial performance of listed non-financial corporations in Sub-Saharan Africa. It also makes several recommendations, such that companies adopt a manageable board size in order to enhance corporate financial performance.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa
AU  - Dheseviano Emiaso
AU  - Gloria Ogochukwu Okafor
Y1  - 2023/06/27
PY  - 2023
N1  - https://doi.org/10.11648/j.jfa.20231103.16
DO  - 10.11648/j.jfa.20231103.16
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 107
EP  - 112
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20231103.16
AB  - The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the association between board independence and financial performance of listed non-financial companies in Sub-Saharan Africa, this study also investigated the relationship between board dynamics and corporate performance. Since the study used an ex post facto research design, secondary sources were used to collect the data. All listed non-financial firms in Sub-Saharan Africa made up the study's population. The study found a positive but non-significant link between board size, board independence, and CEO power and firm financial performance utilising financial statement statistics and exploratory factors in a regression model. The study's findings also suggest that the CEO's influence reduces the association between board independence and corporate financial performance. Therefore, the study draws the conclusion that board dynamics affects the corporate financial performance of listed non-financial corporations in Sub-Saharan Africa. It also makes several recommendations, such that companies adopt a manageable board size in order to enhance corporate financial performance.
VL  - 11
IS  - 3
ER  -

Copy | Download

Author Information

Dheseviano Emiaso

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Gloria Ogochukwu Okafor

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Dheseviano Emiaso, Gloria Ogochukwu Okafor. (2023). Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa. Journal of Finance and Accounting, 11(3), 107-112. https://doi.org/10.11648/j.jfa.20231103.16

Copy | Download

ACS Style

Dheseviano Emiaso; Gloria Ogochukwu Okafor. Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa. J. Finance Account. 2023, 11(3), 107-112. doi: 10.11648/j.jfa.20231103.16

Copy | Download

AMA Style

Dheseviano Emiaso, Gloria Ogochukwu Okafor. Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa. J Finance Account. 2023;11(3):107-112. doi: 10.11648/j.jfa.20231103.16

Copy | Download

@article{10.11648/j.jfa.20231103.16,
  author = {Dheseviano Emiaso and Gloria Ogochukwu Okafor},
  title = {Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa},
  journal = {Journal of Finance and Accounting},
  volume = {11},
  number = {3},
  pages = {107-112},
  doi = {10.11648/j.jfa.20231103.16},
  url = {https://doi.org/10.11648/j.jfa.20231103.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20231103.16},
  abstract = {The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the association between board independence and financial performance of listed non-financial companies in Sub-Saharan Africa, this study also investigated the relationship between board dynamics and corporate performance. Since the study used an ex post facto research design, secondary sources were used to collect the data. All listed non-financial firms in Sub-Saharan Africa made up the study's population. The study found a positive but non-significant link between board size, board independence, and CEO power and firm financial performance utilising financial statement statistics and exploratory factors in a regression model. The study's findings also suggest that the CEO's influence reduces the association between board independence and corporate financial performance. Therefore, the study draws the conclusion that board dynamics affects the corporate financial performance of listed non-financial corporations in Sub-Saharan Africa. It also makes several recommendations, such that companies adopt a manageable board size in order to enhance corporate financial performance.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa
AU  - Dheseviano Emiaso
AU  - Gloria Ogochukwu Okafor
Y1  - 2023/06/27
PY  - 2023
N1  - https://doi.org/10.11648/j.jfa.20231103.16
DO  - 10.11648/j.jfa.20231103.16
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 107
EP  - 112
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20231103.16
AB  - The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the association between board independence and financial performance of listed non-financial companies in Sub-Saharan Africa, this study also investigated the relationship between board dynamics and corporate performance. Since the study used an ex post facto research design, secondary sources were used to collect the data. All listed non-financial firms in Sub-Saharan Africa made up the study's population. The study found a positive but non-significant link between board size, board independence, and CEO power and firm financial performance utilising financial statement statistics and exploratory factors in a regression model. The study's findings also suggest that the CEO's influence reduces the association between board independence and corporate financial performance. Therefore, the study draws the conclusion that board dynamics affects the corporate financial performance of listed non-financial corporations in Sub-Saharan Africa. It also makes several recommendations, such that companies adopt a manageable board size in order to enhance corporate financial performance.
VL  - 11
IS  - 3
ER  -

Copy | Download