The Impact of Corporate Board Meetings on Corporate Performance in South Africa

African Review of Economics and Finance, Vol. 2, No. 2, pp.83-103, 2011

22 Pages Posted: 18 Dec 2011 Last revised: 13 Jan 2012

See all articles by Collins G. Ntim

Collins G. Ntim

University of Southampton Business School, UK; University of Southampton

Kofi A. Osei

University of Ghana Business School

Date Written: December 18, 2011

Abstract

We investigate the impact of corporate board meetings on corporate performance for a sample of 169 listed corporations from 2002 to 2007 in South Africa (SA). Our findings suggest a statistically significant and positive association between the frequency of corporate board meetings and corporate performance, implying that SA boards that meet more frequently tend to generate higher financial performance. A further investigation indicates a significant non-monotonic link between the frequency of corporate board meetings and corporate performance, suggesting that either a relatively small or large number of corporate board meetings impacts positively on corporate performance. Our findings are consistent across a raft of econometric models that control for different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that corporate boards that meet more frequently have increased capacity to effectively advise, monitor and discipline management, and thereby improving corporate financial performance.

Keywords: corporate governance, corporate board meetings, corporate performance, King II, South Africa, endogeneity

JEL Classification: G12, G34, G38

Suggested Citation

Ntim, Collins G. and Osei, Kofi A., The Impact of Corporate Board Meetings on Corporate Performance in South Africa (December 18, 2011). African Review of Economics and Finance, Vol. 2, No. 2, pp.83-103, 2011, Available at SSRN: https://ssrn.com/abstract=1974115

Collins G. Ntim (Contact Author)

University of Southampton Business School, UK ( email )

Southampton Business School
Highfield
Southampton, England SO17 IBJ
United Kingdom
+44 (0) 238059 4285 (Phone)
+44 (0) 238059 3844 (Fax)

HOME PAGE: http://www.southampton.ac.uk/business-school/about/staff/cgn1n11.page

University of Southampton ( email )

Southampton, SO17 1BJ
United Kingdom

Kofi A. Osei

University of Ghana Business School ( email )

P.O. Box LG 78
Legon
Accra, Greater Accra LG 78
Ghana

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