Corporate Board Attributes and Firm Performance of Publicly Traded Manufacturing Companies in Bangladesh

Abstract

The study examines the effects of corporate board attributes on firm financial performance of publicly traded manufacturing companies in Bangladesh in the light of ‘comply or explain’ based on Corporate Governance Notifications (CGN) 2006 and ‘mandatory’ CGN 2012 of Bangladesh Securities and Exchange Commission (BSEC). BSEC makes the CGN mandatory in 2012 to ensure good governance at firm level. The regression results show that the revised CG guidelines are not capable of influencing firm performance measured by ROA but when performance is measured using Tobin’s Q, the revised guidelines are somewhat effective. We did not find any prior study in corporate governance literature that focuses on the effects of revised CGN 2012 on firm performance. This study is a pioneering research and it has led to an academic debate on the effectiveness of mandatory CG guidelines on corporate attributes and hence firm performance.

Keywords: Corporate Board Attributes, Firm Performance, Corporate Governance

DOI: 10.7176/RJFA/10-16-12

Publication date: August 31^st 2019