The Relationship between Size, Independence, and Meetings in the Board of Directories on Market-based Performance (Tobin’s Q) as a Measure of Performance Evidence from Amman Stock Exchange

International Journal of Multidisciplinary Sciences and Advanced Technology Vol 2 No 5 (2021) 41–53

Posted: 6 Oct 2021

See all articles by Saddam Ali Shatnawi

Saddam Ali Shatnawi

Universiti Sains Islam Malaysia (USIM)

Monther Eldaia

Al-Aqsa University; Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Abdelhakhem Adaa

Sebha University

Date Written: July 31, 2021

Abstract

This paper aims to examine the relationship between the board of directories (BoD) on market performance in Jordanian listed firms. The study used panel data approach over a period of five years from 2014 to 2018, with a sample of 92 non-financial firms listed on Amman Stock Exchange (ASE). In terms of the effect of BoD on organization performance, three characteristics of the board of directories these include Board size, Board independence, and Board meeting. The organization performance was assessed Tobin’s Q (TQ) as a market-based indicator. The findings showed the relationships between board of director and organization performance concerning the relationship with Tobin’s Q, the findings showed that the board size and board meeting have a significant relationship with Tobin’s Q. Conversely, board independence has an insignificant relationship with Tobin’s Q. The study contributes to the literature on board of directories and market performance in developing countries especially in Jordan. This study provides useful information that is of great value to policy makers, academics and other stakeholders.

Suggested Citation

Shatnawi, Saddam Ali and Eldaia, Monther and Adaa, Abdelhakhem, The Relationship between Size, Independence, and Meetings in the Board of Directories on Market-based Performance (Tobin’s Q) as a Measure of Performance Evidence from Amman Stock Exchange (July 31, 2021). International Journal of Multidisciplinary Sciences and Advanced Technology Vol 2 No 5 (2021) 41–53 , Available at SSRN: https://ssrn.com/abstract=3896948

Saddam Ali Shatnawi

Universiti Sains Islam Malaysia (USIM) ( email )

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia

Monther Eldaia (Contact Author)

Al-Aqsa University ( email )

Gaza Strip
gaza
Gaza, GA h 0599
Palestine
+970594709595 (Phone)

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat ( email )

N.Sembilan
Malaysia

Abdelhakhem Adaa

Sebha University

PO Box 18758
Sabha
Libya

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