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Board Structure, Ownership Structure and Firm Performance: A Study of New Zealand Listed-Firms

Author

Listed:
  • Fitriya Fauzi

    () (Department of Finance, Waikato Management School, The University of Waikato, Private Bag 3105, Hamilton 3240, New Zealand)

  • Stuart Locke

    (Department of Finance, Waikato Management School, The University of Waikato, Private Bag 3105, Hamilton 3240, New Zealand)

Abstract

This paper investigates the role of board structure and the effect of ownership structures on firm performance in New Zealand's listed firms. Several studies, the majority from the U.S., U.K. and Japan, have examined the relationship between corporate governance mechanisms, ownership structure and firm performance. Those studies yielded different results, affected by the nature of the prevailing governance system for each country. Investigating New Zealand's listed firms could enhance the diversity of the growing body of work that examines this relationship. Though the majority of studies only tested a linear relationship between variables, a number of studies have found a non-linear relationship between board structures, ownership structures and firm performance, and this study confirms the non-linear relationship. Using a balanced panel of 79 New Zealand listed firms, this study employs a Generalised Linear Model (GLM) for robustness. The result reveals that board of directors, board committees, and managerial ownership have a positive and significant impact on firm performance. Meanwhile, non-executive directors, female directors on the board and block holder ownership lower New Zealand firm performance.

Suggested Citation

  • Fitriya Fauzi & Stuart Locke, 2012. "Board Structure, Ownership Structure and Firm Performance: A Study of New Zealand Listed-Firms," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 8(2), pages 43-67.
  • Handle: RePEc:usm:journl:aamjaf00802_43-67
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    6. Hamid Mohsin Jadah & Logasvathi A/P Murugiah & Azira Binti Abdul Adzis, 2016. "The Effect of Board Characteristics on Iraqi Banks Performance," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(4), pages 205-214, October.
    7. Mete KARAYEL & Mesut DOGAN, 2016. "Board Composition and Firm Performance: Evidence from BIST 100 Companies in Turkey," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 33-40.
    8. Alhassan Haladu & Basariah Bt. Salim, 2016. "Corporate Ownership and Sustainability Reporting: Environmental Agencies’ Moderating Effects," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1784-1790.

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