The Impact of Board Interlocking on Firm Performance

Allam M. Hamdan

Article Details

The Impact of Board Interlocking on Firm Performance

Authors:

Allam M. Hamdan

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.26 Issue 1, pp.87-117

Document Type:

Article

Publication Date:

1/2019

Document Language:

English

Document ID (Org No.):

2001943719

pISSN:

2957-3521

Keywords:

Abstract:

 Aim of the paper: This study aims to investigate the effect of board interlocking on firm performance.Study Design: Board interlocking is measured using two different indicators: number of interlocks and number of interlocks per member. As for firm performance, it is measured using return on assets. In addition to other control variables related to corporate governance, ownership structure, firm and board characteristics.Sample and Data: Data of 131 firms is collected from various sectors in the Saudi financial market in the year 2016.Results: The study indicates the presence of positive effect for board interlocking on firm performance.Conclusion: Board interlocking adds expertise to the board; it is a continuous learning process for the board members and a vital channel for knowledge and experience. It is also a means of communication to assure financing sources, which adds value to the firm and is positively affects the firm's financial and operational performance.

Article Details

The Impact of Board Interlocking on Firm Performance

Authors:

Allam M. Hamdan

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.26 Issue 1, pp.87-117

Document Type:

Article

Publication Date:

1/2019

Document Language:

English

Document ID (Org No.):

2001943719

pISSN:

2957-3521

firm performance

Saudi financial market

Multiple memberships on corporate boards of directors

Issues

Article Details

The Impact of Board Interlocking on Firm Performance

Authors: Allam M. Hamdan

Publisher: Kuwait University

Journal: Arab Journal of Administrative Sciences Vol.26 Issue 1, pp.87-117

Document Type: Article

Publication Date: 1/2019

Document Language: English

Document ID (Org No.): 2001943719

pISSN: 2957-3521

firm performance

Saudi financial market

Multiple memberships on corporate boards of directors

Issues

Authors:

Allam M. Hamdan

Publisher:

Kuwait University

Journal:

Arab Journal of Administrative Sciences Vol.26 Issue 1, pp.87-117

Document Type:

Article

Publication Date:

1/2019

Document Language:

English

Document ID (Org No.):

2001943719

pISSN:

2957-3521