Accounting and Auditing Research

Accounting and Auditing Research

The investigation of the Effect of Board of Directors Characteristics on the Firm Performance in Different Level of Market Competition

Document Type : Original Article

Authors
Ahmad Khodamipour
Ramin Ghorbani
Javad Nikkar
Younes Bozraie
10.22034/iaar.2014.104326
Abstract
The process of globalization and the expansion of consumption markets and the increasing number of competitors and degree of competition, it is important to make concepts such as competitiveness. Competitiveness has significant influence over the company's activities and actions. However, studies in some countries showing that the efficiency of the corporate governance mechanisms can be influenced by market competition. Therefore, the present study was to examine the relation between board characteristics and firm performance due to market competition. Accordingly, the data needed for the study of 120 companies listed in Tehran Stock Exchange for the period 1383 to 1389 and panel data regression model were used to test the hypotheses. Also, nonexecutive members of board, the percentage ownership of the board of directors and board members are used as features. For this purpose, six hypotheses to examine this issue in two companies with strong and weak market competition have been considered. The results show a significant impact on the performance of the Board of Directors of the Company does not have any competitive levels. In other words, the Iranian market, the board lacked the necessary performance and their relation with the firm performance does not affect by market competition.
Keywords
Market Competition
Board Independence
Board Size
Percentage Managerial Ownership
Firm Performance
Accounting and Auditing Research
Volume 6, Issue 24
Winter 2015
Pages 34-49