Do Director Attributes Influence Corporate Net Operating Income? Insights from the South Africa Industrial Sector

Busola Simon-Ilogho () and Tankiso Moloi ()
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Busola Simon-Ilogho: University of Johannesburg, Department of Accountancy, College of Business and Economics
Tankiso Moloi: University of Johannesburg, Department of Accountancy, College of Business and Economics

A chapter in Embracing Technological Agility in Accounting and Business – Vol. 2, 2026, pp 285-295 from Springer

Abstract: Abstract South Africa has been among the fast-growing emerging developing markets with so much potential, with the government also giving full support. Hence, the structure and attributes of the board of directors are key players for the long-run growth, development, and improvement of firm performance. However, despite extensive research on corporate governance and firm performance, limited empirical evidence exists on how specific director characteristics influence net operating income within the South African industrial sector. This study aims to bridge this gap by investigating the impact of board attributes on firms with respect to net operating income within the South African industrial sector. The study was grounded on the agency theory, which helped to show that a well-composed board can enhance decision-making and strengthen market competitiveness. By integrating these theories, the study will provide a comprehensive framework for understanding the governance-performance nexus. This study filled this gap by examining a panel data of 26 listed industrial firms. This study used regression analysis to examine the relationship between board attributes—board size, gender diversity, age group, and race—and corporate net operating income. The findings of the study revealed that gender diversity and age diversity are positively associated with net operating income. This study offers valuable evidence to firms, policymakers, investors, and corporate governance practitioners on the extent to which board attributes add value to firm value and net operating income by presenting a deeper understanding of governance practices in emerging market economies and shedding more light to the best practices that can drive sustainable corporate success in South Africa and beyond.

Keywords: Board attributes; Director; Net operating income; Profitability; Industrials (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-13384-7_20

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DOI: 10.1007/978-3-032-13384-7_20

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