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

See all articles by Sabur Mollah

Sabur Mollah

Sheffield University Management School, University of Sheffield; Swansea Management School, Swansea University; Hull University Business School; Hull University Business School

Omar Al Farooque

University of New England (Australia)

A.K.M. Waresul Karim

Saint Mary's College of California - Graduate Business Programs

Date Written: January 7, 2010

Abstract

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

Mollah, Sabur and Farooque, Omar Al and Karim, A.K.M. Waresul, Ownership Structure, Board Characteristics and Financial Performance: Evidence from the Botswana Stock Market (January 7, 2010). Studies in Economics and Finance 29(4), 301-319. Available at SSRN: https://ssrn.com/abstract=1635681 or http://dx.doi.org/10.2139/ssrn.1635681

Sabur Mollah (Contact Author)

Sheffield University Management School, University of Sheffield ( email )

Conduit Road
Sheffield, Sheffield S10 1FL
United Kingdom

Swansea Management School, Swansea University ( email )

Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

Hull University Business School ( email )

Cottingham Road
Hull, Great Britain HU6 7RX
United Kingdom

Hull University Business School ( email )

Cottingham Road
Hull, Hull HU6 7RX
United Kingdom

Omar Al Farooque

University of New England (Australia) ( email )

Armidale
Armidale, New South Wales 2351
Australia

A.K.M. Waresul Karim

Saint Mary's College of California - Graduate Business Programs ( email )

United States

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