Content Details | NUML Online Research Repository

Title Role of Board Control on the Firm Performance

Author(s) Zilla Huma

Abstract This study examines the influence of board control on the firm performance. The board structure, board power, board communication, board meetings are the predictors of a firm performance. The objective is to investigate either there exist an association between the firm performance and the selected predictors. For measuring the performance, sales of the textile firms have been used and 250 textile firms of Faisalabad are used as sample and for collecting the data convenient sampling method have been used. For collecting the data five point Likert scale questionnaire is used and descriptive statistics in which mean and standard deviation is calculated on the response data. Pearson correlation and simple linear Regression and multiple linear regression methods have been applied to test the hypothesis. The purpose of the first research hypothesis is to explore whether any significant relationship between the board structure and firm performance is found or not. The simple linear regression has been used in which significant result and positive coefficient indicates that positive association between the board structure and the firm performance is observed. Further to check the association between the board power and firm performance simple linear regression is used which also indicates significant result. Simple linear regression and significant relationship between the board communication and firm performance is confirmed. The simple linear regression results indicate that there is significant association between the board meeting and firm performace.The last research hypothesis has significant relationship between the firm performance and board structure, board power, board communication and board meeting. The multiple linear regression model is used and the assumption of multiple regression has also diagnosed the linearity and normality of the data and found that data is following the assumption of multiple linear regression. It is concluded that well defined board structure and authorized and responsible board of directors that used their power for the long term decision and keep an eye on the management increase performance of the firm. The strong communication system among different levels of management and the board of directors and the increase in the frequency of board meetings boost the performance of the firm.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2015-01-01

Subject

Publisher

Contributor(s)

Format

Identifier

Source

Relation

Coverage

Rights