Board Characteristics and Firm Performance: A Conﬁgurational Analysis
Keywords:Board characteristics, conﬁgurational analysis, ﬁnancial performance, fuzzy-set QCA, PSX-100 Index
Investors and governments have drawn attention to company governance due to the 2007 ﬁnancial crash. This study aims to determine the impact of board characteristics, i.e. women on the board, busy directors, blockholder ownership, and director qualiﬁcation on ﬁrm ﬁnancial performance based on evidence from Pakistan. Former research on the impact of board features on company ﬁnancial performance is built on contradictory theoretical viewpoints and factual results, which are primarily built on regression and are equivocal. Based on the con- ﬁgurational analysis, this study clariﬁes previously ambiguous ﬁndings concerning the link between keyboard attributes and business ﬁnancial success. This research draws upon theories, including resource dependence and agency theory. The study utilized fuzzy-set qualitative comparative analysis to examine a sample of 60 non-ﬁnancial companies listed on the Pakistan Stock Exchange (PSX). Data referred to the pre-crisis period. Findings have shown that diﬀerent combinations of board attributes can signiﬁcantly impact a ﬁrm proﬁtability, i.e. return on assets (ROA) and return on equity (ROE). Practical implications spotlight the policymakers need to evaluate corporations current level of regulatory and competitive development to plan strategy accordingly. It emphasises unique governance solutions for the non-ﬁnancial sector.
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