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International Journal of Law and Management: Board independence and firm performance: evidence from Kuwait
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Abstract
Purpose – This paper aims to reduce the knowledge gap by using a large sample and different regressions
while controlling the endogeneity and causality issues.
Design/methodology/approach – This study used the ordinary least square (OLS) and two stage least
squares (2SLS) regressions to control the endogeneity and causality problems; this estimation strategy allows
for comparison of both estimates to identify any inconsistency and biases in the parameters.
Findings – General speaking, this study found that board independence negatively affected firm
performance based on Tobin’s Q only and the relationship between the two variables ran from board
independence to firm performance but not vice versa.
Originality/value – The current independent directors are not adding value to Kuwait’s listed firms. Some
directors who represent large shareholders and the conflict between large shareholders and small
shareholders could affect the role of independent directors in Kuwait. To best of the researchers’ knowledge,
this study is the first to consider board independent after controlling the issues of endogeneity and causality
in Kuwait; thus, the results could be useful for Kuwaiti firms, regulators and policymakers.
Mejbel Al-Saidi - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2021
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Mejbel Al-Saidi. (2021).International Journal of Law and Management:
Board independence and firm
performance: evidence
from Kuwait.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd