The Moderating Effect of Board Diversity on the Relationship Between Board of Directors Characteristics and Firm Performance in Oman: Empirical Study

Al-Matari, Ebrahim Mohammed; Bt Fadzil, Faudziah Hanim; Al-Swidi, Abdullah Kaid
May 2014
Middle East Journal of Scientific Research;2014, Vol. 21 Issue 5, p782
Academic Journal
This study has two main substantial targets and one of them is the examination of the relationship between the board of director characteristics namely, board size, board independence, board meeting, CEO tenure and CEO duality and firm performance. The other aim is to explore the moderating effect of the board diversity (board foreign members on the board and the board commitment) on the association between the board of director and firm performance. The sample of this study covered non-financial companies in two years (2011 and 2012). This study used multiple regressions to analyze the association between the independent variables and dependent variable. In addition, this study uses hierarchical multiple regression to examine the relationship between moderator's variable and dependent variable. This study found a positive relationship between board size, board meeting, CEO tenure and CEO duality with ROA but no significant. On the other hand, a negative but not significant relationship was revealed between board independence and ROA. Moreover, this study found moderating but not significant effect of board diversity on the board of director-ROA relationship.


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