EconPapers    
Economics at your fingertips  
 

META-ANALYTIC REVIEW OF THE RELATION BETWEEN BOARD GLOBALIZATION AND FIRM PERFORMANCE

Ibrahim Yagli and Burcu Şi̇mşek
Additional contact information
Ibrahim Yagli: Institute of Social Sciences, Nevşehir Hacı Bektaş Veli University, Turkey
Burcu Şi̇mşek: Faculty of Economics and Administrative Sciences, Nevşehir Hacı Bektaş Veli University, Turkey

Studii Financiare (Financial Studies), 2017, vol. 21, issue 2, 31-55

Abstract: Following the corporate governance scandals such as Enron, WorldCom, and Vivendi, the special attention has been attached to the board composition, and different dimensions related to board diversity has been discussed in this context. Recently, the interest in the board of directors’ diversity has shifted to the globalization of boards, and the number of studies that investigates the relation between foreign board members and firm financial performance has increased. However, these studies report contradictory results, therefore the current study aims to reconcile these conflicting results. In response to these results, meta-analyses have been conducted by using the results obtained from 21 individual studies. The results show that the relation between foreign board representation and general firm financial performance is positive, however, the effect size for this relation is small. Similarly, there is a positive relation between foreign board representation and accounting-based firm performance. By contrast, the analysis has found that there is no statistically significant relation between foreign board representation and marketbased firm performance. Overall, the results suggest that although foreign board representation does not lead large-scale increase in the firm financial performance, the impact is still positive. Even though the study has several limitations, the findings might assist the executives, shareholders, regulators, and researchers.

Keywords: Board diversity; foreign board representation; performance measurement; corporate governance; meta-analysis (search for similar items in EconPapers)
JEL-codes: G34 L25 M14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
ftp://www.ipe.ro/RePEc/vls/vls_pdf/vol21i2p31-55.pdf

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:vls:finstu:v:21:y:2017:i:2:p:31-55

Access Statistics for this article

More articles in Studii Financiare (Financial Studies) from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Mateescu ().

 
Page updated 2018-04-21
Handle: RePEc:vls:finstu:v:21:y:2017:i:2:p:31-55