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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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    References listed on IDEAS

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    Cited by:

    1. Cahit Yilmaz & Ali Hakan Buyuklu, 2016. "Impacts of Corporate Governance on Firm Performance: Turkey Case with a Panel Data Analysis," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 4(1), pages 56-72.

    More about this item

    Keywords

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

    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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