Ownership Structure, Board Characteristics and Financial Performance: Evidence from the Botswana Stock Market
Studies in Economics and Finance 29(4), 301-319
Posted: 7 Jul 2010 Last revised: 14 Jun 2014
Date Written: January 7, 2010
Despite vast majority corporate governance and firm performance literature in recent years, there is none on Botswana’s corporate sector. This study investigates the relationship between ownership structure, board characteristics and financial performance to determine the role of corporate governance in the performance behavior of companies listed in an emerging market like Botswana. The approach of this study is different from available literature in capturing all types of shareholdings together in addition to other corporate governance and firm-specific control variables. The empirical evidence shows distinct nature of corporate governance behavior among alternative performance measures used, in particular between accounting-based/hybrid and market-based measures. Such diversity in findings provides insights to policy-makers to take appropriate measures on corporate governance and stock market development in order to ensure their efficiency.
Keywords: Corporate Governance, Ownership Structure, Financial Performance, Emerging Market, Botswana
JEL Classification: G32, G34
Suggested Citation: Suggested Citation