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
Date Written: July 31, 2021
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.
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