Publication Type

Journal Article

Version

publishedVersion

Publication Date

10-2021

Abstract

The study investigates the relationship between six board compositions and stock returns. The results indicate a significant association between various board compositions and stock returns. Specifically, board size and executive directors have a negative impact, whereas independent directors enhance stock returns. Busy directors positively impact the abnormal stock returns for the companies in the non-financial industry, which implies that busy directors who serve on more boards tend to be well connected. More importantly, the results indicate a significant positive relationship between board tenure and stock returns. Board service time is perceived as the board quality of knowledge and experience from the investors’ point of view.

Keywords

Corporate governance, Board structure, Board composition, Stock return, Abnormal return

Discipline

Corporate Finance | Finance and Financial Management

Research Areas

Finance

Publication

International Journal of Business and Economics

Volume

6

Issue

2

First Page

76

Last Page

87

ISSN

2545-4137

Identifier

10.5281/zenodo.5565466

Copyright Owner and License

Authors-CC-BY

Additional URL

https://doi.org/10.5281/zenodo.5565466

Share

COinS