What is it about?
The paper explores how different traits of company boards relate to their performance in South Africa. It examines factors like the percentage of female members, CEO and chairman pay, and the payment gap. The findings show that having more women on the board is associated with lower performance, while higher pay for the CEO and chairman, as well as a larger payment gap, are linked to better performance. The study provides valuable insights for stakeholders by questioning if commonly recommended board characteristics align with actual company performance.
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Why is it important?
This research is important because it investigates the connection between various characteristics of company boards and their performance in South Africa. By analyzing factors such as gender diversity, CEO and chairman pay, and payment gaps, the study provides insights into how these aspects influence a company's success. The findings challenge conventional beliefs, indicating that more women on the board may not always lead to better performance, and higher executive pay might be associated with improved company outcomes. This challenges existing notions and offers valuable information for stakeholders, informing them about the actual impact of different board characteristics on company performance.
Read the Original
This page is a summary of: The association between board characteristics and the risk-adjusted return of South African companies, International Journal of Disclosure and Governance, October 2020, Springer Science + Business Media,
DOI: 10.1057/s41310-020-00096-9.
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