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
Master of Science in Accountancy
Ramon V. Del Rosario College of Business
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.
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
1 computer disc ; 4 3/4 in.
Javed, A. (2017). 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. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/5724