University of Twente Student Theses
The impact of board characteristics on firm performance in Germany
Kazan, E. (2022) The impact of board characteristics on firm performance in Germany.
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| Abstract: | This study examines the impact of board characteristics on firm performance for German listed firms. Previous literature presents different findings on the impact of board characteristics on firm performance. Four important theories, namely the agency theory, stewardship theory, resource dependence theory and human capital theory are described. Three main board characteristics are analyzed, namely board size, independence and gender diversity. Performance is measured based on two accounting-based (ROA and ROE) and a market-based measure (Tobin’s Q). The relationship between the board characteristics and firm performance is tested by conducting an OLS regression analysis, using data from a sample of 89 German firms from the Frankfurt Stock Exchange for the period of 2017 to 2019. The results show a negative significant relationship between board size and firm performance. There is a negative significant relationship between board independence and the accounting-based measures, whereas the relationship with Tobin’s Q is significant and positive. Gender diversity has no significant impact on ROA and ROE, and a significant negative impact on Tobin’s Q. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 05 communication studies, 83 economics, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/89648 |
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