حاکمیت شرکتی و عملکرد مالی: نقش مالکیت و ساختار هیئت مدیره Corporate governance and financial performance: The role of ownership and board structure

1. Introduction This study explores the determinants of financial performance. Corporate governance, firm size, and ownership are analyzed as antecedents of financial performance. This novel study combines fuzzy-set qualitative comparative analysis (fsQCA) of a large panel of firms (1207 companies from 59 countries for the period 2013 to 2015) with linear and non-linear multiple regression analysis (MRA). It thus overcomes the known limitations of linear regression analysis (Woodside, 2013) by using a comprehensive approach that embraces Poisson regression and fsQCA. The study has two salient features. First, from a methodological perspective, the study combines the use of three empirical techniques. Second, the study provides some useful hints for practitioners and managers regarding the controversial relationship between corporate governance and financial performance. The academic debate on the link between corporate governance and financial performance is open. For example, do high stock dividends negatively impact future returns? Does a high capitalization ratio affect return on equity (ROE)? And what is the optimal board size? Certain scholars suggest that corporate governance and firm performance are complex (Hermalin & Weisbach, 1991; Dalton & Dalton, 2011; McGuire, Dow, & Ibrahim, 2012a; Fogel & Geier, 2007). These scholars have found multiple contradictory linkages including outside directors, compensation, and board size. Furthermore, the empirical findings in this area are not conclusive (Bhagat & Black, 2001; Klein, 2015). Yet, studies have failed to jointly control for board size, compensation, and ownership dispersion. Research has shown that ownership dispersion is relevant to financial performance (La Porta, Lopez-De-Silanes, Shleifer, & Vishny, 2002; Maury & Pajuste, 2005; Konijn, Kräussl, & Lucas, 2011). This study uses board size and ownership dispersion to provide a new perspective on previous studies (Bhagat & Black, 1999; Eisenberg, Sundgren, & Wells, 1998; Jensen, 1993; Hermalin & Weisbach, 2001). Additionally there is no clear consensus on the most suitable way to measure financial performance (Dalton & Dalton, 2011). This study uses ROE as a direct measure of financial performance (Bhagat & Black, 1997). The rest of the study is structured as follows: Section 2 presents the research hypotheses. Section 3 introduces the data set and empirical method. Section 4 presents and discusses the results. Section 5 concludes by providing research limitations, managerial implications, and avenues for future research.