Board Characteristics and Firm Performance: Evidence from Palestine
European Journal of Accounting Auditing and Finance Research, Vol. 3, No. 3, pp. 32-47, March 2015
16 Pages Posted: 9 Mar 2015
Date Written: March 8, 2015
The objective of this research paper is to assess the relationship between the Return on Assets and Board Characteristics (Board independence, Board meeting, Board size, Board expertise, Company size and Company year of incorporation). The research consisted of examining companies listed on the Palestine Exchange with analysis undertaken through regression analysis. After studying the six variables, the researcher found the existence of only one relationship which was between the age of the organization/year of incorporation and the company’s Return on Assets (ROA). This paper provides a greater insight to understanding corporate governance in Palestine. The approach, taken in this paper, will enable companies to assess the true relationship between the Return on Assets to Board independence, Board meeting, Board size, Board expertise, Company size and Company year of incorporation. It will enable them, also, to find ways of ensuring these factors become more relevant to the organization’s performance. Palestine is still a young country in relation to corporate governance and the outcome of this paper will enable companies to grow positively.
Keywords: Board Characteristics, Firm Performance, Corporate Governance, Palestine
JEL Classification: G30, M40, M41
Suggested Citation: Suggested Citation