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Board Structure and Firm Performance: Evidence from French Firms Listed in SBF 120

Author

Listed:
  • Aymen Ammari

    (High Business School of Tunis, University of Manouba, Tunisia.)

  • Mohamad Kadria

    (LAREQUAD & FSEGT, University of Tunis - EL Manar, Tunisia, B.P 248, El Manar II, 2092, Tunis, Tunisia)

  • Abderrazak Ellouze

    (Higher School of Digital Economy, University of Manouba, Tunisia.)

Abstract

Using a sample of 40 French companies listed on the SBF 120 for the period 2002-2009, we examine if board structure (board size, independence of its members andthe cumulativefunctions of decision and control) relate to their performance. To test the validity of our hypothesis,which states the existence of a certain deterministic between the board structure and financialperformance measured by four different ratios, namely ROA, ROE, Tobin's Q and Market to Book, we have developed four dynamic panel system GMM approach to control for relevant sources of endogeneity (simultaneity, reverse causality and unobserved heterogeneity). Our results support the idea, commonly accepted, that board structure is a determinant factor for French firm performance.

Suggested Citation

  • Aymen Ammari & Mohamad Kadria & Abderrazak Ellouze, 2014. "Board Structure and Firm Performance: Evidence from French Firms Listed in SBF 120," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3).
    • Handle: RePEc:eco:journ1:2014-03-13
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    Cited by:

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    2. Matteo Rossi & Jamel Chouaibi & Salim Chouaibi & Wafa Jilani & Yamina Chouaibi, 2021. "Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms," JRFM, MDPI, vol. 14(8), pages 1-15, August.
    3. Jamel Eddine Mkadmi & Arem Say & Sana Saida, 2022. "The Impact of Internal Governance Mechanisms on Tax Risk in Developing Countries: An Empirical Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 86-94, September.
    4. Iwiyisi Inua, Ofe & Anita Emeni, Ashinedu, 2019. "Corporate Governance Attributes And Social Sustainability Reporting," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 8(1), pages 21-37, June.
    5. Jung Yun Choi & Doo Bong Han, 2018. "The Links between Environmental Innovation and Environmental Performance: Evidence for High- and Middle-Income Countries," Sustainability, MDPI, vol. 10(7), pages 1-14, June.
    6. Lasha Labadze & Mohamed M. Sraieb, 2023. "Impact of Anti-Pandemic Policy Stringency on Firms’ Profitability during COVID-19," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    7. Shivan Sarpal, 2018. "Does Endogeneity in Causal Relationships Matter: A Case of Board Independence and Firm’s Market Valuation," Emerging Economy Studies, International Management Institute, vol. 4(1), pages 19-39, May.
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    More about this item

    Keywords

    Board of Directors; board size; independence of the board; accumulation of functions; financial performance; system GMM.;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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