What is it about?
This paper aims to investigate the impact of corporate governance through board size, female directors, family duality, and director ownership on firm’s profitability in Bangladesh. It’s a quantitative study on 110 manufacturing firms listed in Dhaka Stock Exchange. Multivariate Pooled OLS regressions are applied on 512 sample-year observations from the year of 2013 to 2017 to test the hypotheses in the study. On one side, the results reveal that larger board size and female directors on board are positively associated with firm’s profitability, which in turns helps to enhance firm’s profitability. On the other side, it is also found in the results that percentage of shares held by the directors and family duality are negatively related to firm’s profitability and thus reduces firm performance. The outcomes of this study advocate the policy makers to formulate a policy by addressing the percentage of shares held by the directors to be kept at a certain level.
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Why is it important?
This paper uses huge sample, a contemporary variable of corporate governance which is family duality in its model
Perspectives
It was a great pleasure to work on an issue like corporate governance which is always changing and recommended for its improvement. It was a great opportunity to recommend the policy makers and regulators based on the findings of this article
Mohammad Rajon Meah
Uttara University, Dhaka, Bangladesh
Read the Original
This page is a summary of: Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation, Indian Journal of Corporate Governance, June 2019, SAGE Publications,
DOI: 10.1177/0974686219836544.
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