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Antecdents and Performance Outcome of Board Independence: Australian Evidence
conference contribution
posted on 2023-05-23, 04:24 authored by Wang, Yi, Brooks, A, Oliver, JCurrent recommendations in Australia and some other economies identify independent directors as a key component of effective corporate governance. The research on the empirical link between board characteristics and firm performance, matching the trend towards greater board independence, is growing; the mixed evidence, however, suggests the need for an in-depth investigation. In this study several theories, which make different predictions about the effect of board independence on firm performance and vice versa, are tested. The results indicate that, for Australian listed companies, there is no strong relationship between board independence, and past or subsequent firm performance; it is reported that the level of board independence does not have any significant effect on firm . risk. The evidence casts doubts on the hope that promoting board independence would improve corporate performance. It is recommended that, despite agency theory's policy influence, whether certain corporate governance practices proposed-by the perspective would lead to better performance should be empirically tested.
History
Publication title
Proceedings of the AFAANZ Conference 2008Editors
Chairman of Technicial CommitteePagination
EJDepartment/School
TSBEPublisher
AFAANZPlace of publication
Sydney, AustraliaEvent title
AFAANZ 2008Event Venue
Sydney, AustraliaDate of Event (Start Date)
2008-07-06Date of Event (End Date)
2008-07-08Repository Status
- Restricted