3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The relationship between board composition and firm performance: A study of South African public companies(2014-08-06) Muchemwa, Munyaradzi RaymondAcademic and commercial interest in the corporate governance practices of publicly listed companies has increased significantly in recent years (Rossouw, 2005). With high-profile corporate failures such as Enron and WorldCom heightening the interest in corporate governance practices (Rashid, 2011). It has become evident that the performance of well governed firms is superior to that of less well governed firms (Kyereboah-Coleman & Biekpe, 2005). Despite the fact that corporate governance is multi-dimensional (Kyereboah-Coleman & Biekpe, 2005), this study focused on the impact of board composition (defined by the percentage representation of independent non-executive directors on the board) and board size on the firm performance measures namely; Tobin’s Q (TOB), return on assets (ROA), and return on equity (ROE) of firms listed on the Johannesburg Securities Exchange (JSE). Annual data, from the period 2006 to 2012 was used while the analysis of data was done using the Multiple Regression Analysis Model. After having analysed the research results, it was found that no significant relationship exists between the proportion of independent non-executive directors on the board and board size, and firm performance measures. Thus, this research study suggests that performance of South African companies listed on the JSE Securities Exchange is not influenced by board composition and board size.Item The impact of board structures on intellectual capital performance in South Africa: An empirical investigation(2014-03-06) Vermeulen, KatinkaThe well documented agency problem remains an ongoing debate, with the board as a central point of corporate governance providing a control mechanism. The effective composition and functioning of the board is therefore highlighted as being key to overcoming agency‐problems (Hermalin and Weisback, 2003; Adams and Ferreira, 2009). This research report explores the relationship between the structural aspects of the board, including the average age of board members, the size of the board of directors and the specific positions women and ethnic persons hold on the board of South African listed companies, and intellectual capital performance measured using VAIC™ (Pulic, 2000), as well as market adjusted share returns. The population consists of all South African companies listed on the JSE Securities Exchange during 2011 with the final sample consisting of 193 companies after transformation of the data. The results of the regression analyses indicated no significant relationship between intellectual capital performance and board size, or specific positions being held by women or ethnic persons. A significant positive relationship however exists between the average age of the board of directors and intellectual capital performance. As a result, companies may be able to enhance their intellectual capital performance by increasing the average age of their board members. Key words: Board structure, Diversity, Ethnic, Gender, Age, Board size, Intellectual capital, Performance, South Africa.