Corporate Finance and Governance: The Effect of Board Composition on Financial Decision-Making

Mir Beburg Lehri, Waqar Sadiq, Muhammad Faheem Ullah and Muhammad Musaddique Latif
Additional contact information
Mir Beburg Lehri: Research Scholar, IBMS, University of Balochistan, Pakistan
Waqar Sadiq: PhD, Air University, Multan Campus, Islamabad, Pakistan
Muhammad Faheem Ullah: Research Scholar, Institute of Business Management Sciences, University of Agriculture Faisalabad, Pakistan
Muhammad Musaddique Latif: Research Scholar, Fast School of Management, National University of Computer and Emerging Sciences, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 3, 165-170

Abstract: This study examined the impact of board composition on financial decision-making in corporate governance. Using a sample of 500 publicly traded companies from 2010 to 2024, we analyzed the relationship between board characteristics (size, independence, diversity) and financial outcomes (return on assets, debt-to-equity ratio, dividend payout). Employing partial least squares structural equation modeling (PLS-SEM), our findings revealed that board independence and diversity positively influenced financial performance and risk management. However, board size showed a non-linear relationship with financial outcomes. These results contribute to the ongoing discourse on optimal board structures and their role in enhancing corporate financial governance.

Keywords: Corporate Governance; Board Composition; Financial Decision-Making; PLS-SEM; Board Independence; Board Diversity (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bbejournal.com/BBE/article/view/968/1046 (application/pdf)
https://bbejournal.com/BBE/article/view/968 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:13:y:2024:i:3:p:165-170

DOI: 10.61506/01.00430

Access Statistics for this article

Bulletin of Business and Economics (BBE) is currently edited by Dr. Muhammad Irfan Chani

More articles in Bulletin of Business and Economics (BBE) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani ().