The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine

The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine

Corporate Governance (CG) issues are now the core subject for business leaders and regulators worldwide. Since Palestinian listed firms on Palestine Securities Exchange (PSE) have experienced a weak performance due to the poor governance, focusing on the relationship between corporate governance and...

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Main Author: Saleh, Mohammed W. A.
Format: Thesis
Language:eng
eng
eng
Published: 2019
Subjects:
HD2709-2930.7 Corporations
Online Access:https://etd.uum.edu.my/9411/1/depositpermission_s901044.pdf
https://etd.uum.edu.my/9411/2/s901044_01.pdf
https://etd.uum.edu.my/9411/3/s901044_references.docx
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spelling my-uum-etd.94112022-05-29T09:48:18Z The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine 2019 Saleh, Mohammed W. A. Abdul Latif, Rohaida Abu Bakar, Fathiyyah Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD2709-2930.7 Corporations Corporate Governance (CG) issues are now the core subject for business leaders and regulators worldwide. Since Palestinian listed firms on Palestine Securities Exchange (PSE) have experienced a weak performance due to the poor governance, focusing on the relationship between corporate governance and performance of Palestinian firms contributes to the literature. Using the frameworks of agency theory, resource dependence theory and busyness hypothesis, this study examined the relationship of board characteristics, Audit Committee (AC) characteristics, Chief Executive Officer (CEO) characteristics and ownership structures on firm performance. It also examined the role of CEO Political Connection (PC) in the relationship between CG mechanisms and performance of Palestinian firms over the period 2009 to 2016. Mixed method approach was used in the study. The study used 200 firm-year observations from the annual reports of firms listed in PSE. Besides, series of semi-structured interviews were conducted with the board members, CEO, Chief Financial Officer (CFO) and shareholders to ensure the robustness of the quantitative findings. Panel data regressions were used on the quantitative data to examine the effect of the predictors on performance. The results showed that board financial knowledge, AC meeting, AC financial expertise and CEO tenure were positively associated with performance. Conversely, board size, board independence, CEO multiple directorships, and institutional ownership were negatively associated with performance. Moreover, it was established that CEO PC strengthens the relationship between AC meeting, AC financial expertise, family ownership and performance. However, the CEO PC weakens the relationship between board size, board financial knowledge, foreign directors, AC size, CEO tenure, director ownership and performance. This study provided various theoretical implications such as exposing how CEO multiple directorships can negatively affect the firm’s performance. Regulators may use the findings of the study to upgrade the existing code to improve CG practices, especially in the Palestinian perspective. 2019 Thesis https://etd.uum.edu.my/9411/ https://etd.uum.edu.my/9411/1/depositpermission_s901044.pdf text eng staffonly https://etd.uum.edu.my/9411/2/s901044_01.pdf text eng public https://etd.uum.edu.my/9411/3/s901044_references.docx text eng public other doctoral Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
eng
advisor Abdul Latif, Rohaida
Abu Bakar, Fathiyyah
topic HD2709-2930.7 Corporations
spellingShingle HD2709-2930.7 Corporations
Saleh, Mohammed W. A.
The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine
description Corporate Governance (CG) issues are now the core subject for business leaders and regulators worldwide. Since Palestinian listed firms on Palestine Securities Exchange (PSE) have experienced a weak performance due to the poor governance, focusing on the relationship between corporate governance and performance of Palestinian firms contributes to the literature. Using the frameworks of agency theory, resource dependence theory and busyness hypothesis, this study examined the relationship of board characteristics, Audit Committee (AC) characteristics, Chief Executive Officer (CEO) characteristics and ownership structures on firm performance. It also examined the role of CEO Political Connection (PC) in the relationship between CG mechanisms and performance of Palestinian firms over the period 2009 to 2016. Mixed method approach was used in the study. The study used 200 firm-year observations from the annual reports of firms listed in PSE. Besides, series of semi-structured interviews were conducted with the board members, CEO, Chief Financial Officer (CFO) and shareholders to ensure the robustness of the quantitative findings. Panel data regressions were used on the quantitative data to examine the effect of the predictors on performance. The results showed that board financial knowledge, AC meeting, AC financial expertise and CEO tenure were positively associated with performance. Conversely, board size, board independence, CEO multiple directorships, and institutional ownership were negatively associated with performance. Moreover, it was established that CEO PC strengthens the relationship between AC meeting, AC financial expertise, family ownership and performance. However, the CEO PC weakens the relationship between board size, board financial knowledge, foreign directors, AC size, CEO tenure, director ownership and performance. This study provided various theoretical implications such as exposing how CEO multiple directorships can negatively affect the firm’s performance. Regulators may use the findings of the study to upgrade the existing code to improve CG practices, especially in the Palestinian perspective.
format Thesis
qualification_name other
qualification_level Doctorate
author Saleh, Mohammed W. A.
author_facet Saleh, Mohammed W. A.
author_sort Saleh, Mohammed W. A.
title The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine
title_short The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine
title_full The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine
title_fullStr The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine
title_full_unstemmed The moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in Palestine
title_sort moderating role of ceos' political connection on the relationship between corporate governance mechanisms and firm performance among listed companies in palestine
granting_institution Universiti Utara Malaysia
granting_department Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate 2019
url https://etd.uum.edu.my/9411/1/depositpermission_s901044.pdf
https://etd.uum.edu.my/9411/2/s901044_01.pdf
https://etd.uum.edu.my/9411/3/s901044_references.docx
_version_ 1747828590751252480

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