CEO Power, Board Size and Firm Performance: Evidence from Pak, China, USA and India Banking Sector

Nazima Ellahi; Muhammad Mansoor; Zulkarnain Khan; MuteeUr Rahman

Abstract:

The purpose of this study is to examine the impact of CEO power and Board size on firm performance in banking sector of Pakistan, USA, China and India. Panel data set, Random and fixed effect regression model was applied to check the relationship between CEO power, Board size and firm performance. CEO power can be measured by CEO duality and CEO tenure while firm performance can be measured by ROA, ROE, NP margin and EPS. In Pakistan, Board size and CEO duality have significant relationship with net profit margin in banking sector. The results depict that in India Banking sector, CEO tenure and CEO duality has significant relationship with performance. In USA banking sector, results are depicting that there is no significant relationship. In China, CEO tenure has significant relationship with ROE, EPS, and NP margin. CEO duality has significant relation with ROA. This study fills the gap in knowledge in emerging Asian countries like India, Pakistan and developed country of China and USA Governance Literature about CEO power, Board size and firm performance. This study analyzes the Asian emerging economies of India and Pakistan with Asian developed country China and non-Asian developed country USA

research from:

• Foundation University - Faculty of Management Sciences

Year:

2018

Type of Publication:

Article

Journal:

Journal of Managerial Sciences

Volume:

11

Number:

3

Pages:

371-384

Month:

5