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The Effect of Board's Quality on Performance: a study of Canadian firms


  • Fodil Adjaoud
  • Daniel Zeghal

    (Telfer School of Management at the University of Ottawa (Canada))

  • Syed Andaleeb

    (The Sam & Irene Black School of Business, Penn State Erie, USA)


We investigate the impact of board's quality as defined by a Score published in a Canadian National Newspaper on the performance of the firm. Based on the current literature, we ranked the boards of 219 Canadian firms in terms of four board characteristics: composition of the board, compensation of board members, shareholder rights, and disclosure. Then, we defined firm performance by using traditional accounting-based measures such as ROI, ROE, EPS, and Market-to-book ratio and value creation-based measures such as EVA(R) and MVA. To test the effects of board's quality on firm performance, we adopted different models of univariate and multivariate statistical analysis. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

Suggested Citation

  • Fodil Adjaoud & Daniel Zeghal & Syed Andaleeb, 2007. "The Effect of Board's Quality on Performance: a study of Canadian firms," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(4), pages 623-635, July.
  • Handle: RePEc:bla:corgov:v:15:y:2007:i:4:p:623-635

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    References listed on IDEAS

    1. Khanna, Tarun & Kogan, Joe & Palepu, Krishna, 2002. "Globalization and Similarities in Corporate Governance: A Cross-Country Analysis," CEI Working Paper Series 2002-6, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
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    Cited by:

    1. Jean-Christophe Duhamel & Réda Sefsaf, 2017. "Valeur de la gouvernance d'entreprise et gouvernance des valeurs de l'entreprise. Recherche sur les effets des codes de gouvernance et les stratégies de communication en matière de gouvernance," Working Papers halshs-01633982, HAL.
    2. M. Lopez-Perez & Lazaro Rodriguez-Ariza, 2013. "Ownership and trust in the governance structures of Spanish-Moroccan SMEs constituted as international joint ventures," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(3), pages 609-624, September.
    3. repec:eee:riibaf:v:42:y:2017:i:c:p:658-673 is not listed on IDEAS
    4. Jaana Lappalainen & Mervi Niskanen, 2009. "Does Board Composition and Ownership Structure Affect Firm Growth? Evidence from Finnish SMEs," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 1(1).
    5. Ferdaws Ezzi & Mohamed Ali Azouzi & Anis Jarboui, 2015. "Environmental performance indicators of Tunisian companies: Analysis via the decision tree," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 5(8), pages 114-127, August.
    6. Holm, Claus & Schøler, Finn, 2008. "Reduction of Asymmetric Information through Corporate Governance Mechanisms : The Importance of Ownership Dispersion and International," Accounting Research Center Working Papers A-2008-02, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    7. Berezinets Irina & Ilina Yulia & Muravyev Alexander, 2011. "Owners, Boards, Managers and the Private Benefits of Control: A Study of Dual Class Stock Firms in an Emerging Market," EERC Working Paper Series 11/12e, EERC Research Network, Russia and CIS.
    8. Fodil Adjaoud & Walid Ben-Amar, 2010. "Corporate Governance and Dividend Policy: Shareholders' Protection or Expropriation?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(5-6), pages 648-667.
    9. Chou, Hsin-I & Chung, Huimin & Yin, Xiangkang, 2013. "Attendance of board meetings and company performance: Evidence from Taiwan," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4157-4171.
    10. Dulyak, Yulia, 2015. "Empirical Analysis of the Boards of Directors’ Impact on the Corporate Performance of Russian Companies," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 126-148, February.

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