An empirical study on the impact of board mechanisms and diversity on performance and value: The case of publicly listed companies in the Philippines during 2012 to 2016

Date of Publication


Document Type

Master's Thesis

Degree Name

Master of Science in Accountancy


Ramon V. Del Rosario College of Business



Thesis Adviser

Rodiel C. Ferrer
Alger C. Tang

Defense Panel Member

Mark Vincent B. Bendo
Ankiat Byron Co
Brian C. Gozun


A competent board is one of the essential features of corporate governance. A board structure is a combination of several board attributes such as board size, independence, CEO duality, and multiple directorship. Also, another key issue in board mechanisms is the diversity of the members of the board.

The focus of this study is to assess the impact of board mechanisms and diversity on firm performance and value. This study used three measures for performance and value which include ROE, ROA, and Tobin's Q. The independent variables for this study are board mechanisms and diversity. Board Mechanisms were measured by several board-related variables including Board Size, Board Independence, CEO duality, and Multiple Directorship. For diversity, three proxies were used, namely, Gender, Age, and Nationality diversity. Furthermore, several control variables were used, including firms capital structure, size, age and efficiency.

The results of the study revealed that Board Size is the only influential Board Mechanism variable that impacts the financial performance and value of publicly listed companies in the Philippines. The Size of the Board had a significant impact on all of the dependent variables used in the study. The results suggested that an increase in the board size diminishes the performance and value of companies.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

1 computer disc ; 4 3/4 in.


Corporate governance

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