Board Structure, Ownership Structure and Firm Performance: A Study of New Zealand Listed-Firms

By Fitriya Fauzi, S. Locke. 2012

315 citations recorded by the source corpus.

This paper investigates the role of board structure and the effect of ownership structures on firm performance in New Zealand's listed firms. Several studies, the majority from the U.S., U.K. and Japan, have examined the relationship between corporate governance mechanisms, ownership structure and firm performance. Those studies yielded different results, affected by the nature of the prevailing governance system for each country. Investigating New Zealand's listed firms could enhance the diversity of the growing body of work that examines this relationship. Though the majority of studies only tested a linear relationship between variables, a number of studies have found a non-linear relationship between board structures, ownership structures and firm performance, and this study confirms the non-linear relationship. Using a balanced panel of 79 New Zealand listed firms, this study employs a Generalised Linear Model (GLM) for robustness. The result reveals that board of directors, board committees, and managerial ownership have a positive and significant impact on firm performance. Meanwhile, non-executive directors, female directors on the board and block holder ownership lower New Zealand firm performance.

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Citations in the corpus

Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach (2016, methodology): “Various researchers (Adhikary, Huynh, & Hoang, 2014; Coles, Daniel, & Naveen, 2008; Fauzi & Locke, 2012; Jackling & Johl, 2009; Kathuria & Dash, 1999; Mak & Li, 2001; Pearce & Zahra, 1992) found that there exists a positive relationship between the board size and firm performance.”
Gender diversity and firm performance: evidence from India and Singapore (2019, background): “Lower book value (from 0 to 1) implies a low firm performance, and the poor market expectation of firm from market investors (Fauzi and Locke 2012).”
Audit Committee, Corporate Governance and Firm Performance: Empirical Evidence from India (2016, background): “Interestingly, Olokoyo (2013) and many other authors such as De Oliveira Gondrige et al. (2012), Fauzi and Locke (2012), Lama (2013), Zeitunand Gang Tian (2007) found that high leverage resulted in lower return on assets of firms, but increased Tobin‘s Q.”
The Impact of Supervisory Board Composition on CSR Reporting. Evidence from the German Two-Tier System (2016, background): “While some have found a positive relation (e.g., [17]), others have found a negative impact on company performance (e.g., [18]), or even no connection at all (e.g., [19]).”