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The relationship of board duality by comparing directors with their firms’ performance - Dissertation Example

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Author : sluettgen

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The purpose of this research is to examine the relationship of board duality by comparing directors with their firms’ performance. This research will provide a literature review of different studies conducted in the past as a validation of this research…

Extract of sample
The relationship of board duality by comparing directors with their firms’ performance

According to the research findings in recent years, transparency has become an important aspect of corporate governance that allows investors and shareholders to observe the performance of the company. In this way, investors and stakeholders are aware of the internal conditions and functioning of the company. Brown and Caylor suggest that the significant relationship between corporate governance and performance is due to the controlling role of the shareholders. They stated that shareholders could elect a board of directors of their choice, which would help them to monitor management performance and enable them to provide suitable suggestions to improve the company’s performance. This research will examine listed companies in Kuwait and it will test whether duality has a positive or negative impact in the performance of these companies. Kuwaiti companies have been selected because there are more than 200 companies listed in the Kuwaiti stock exchange (KSE) and 57 per cent of companies have this dual leadership function. Duality in the boards of Kuwaiti’s listed companies and the performance of these companies has become questionable because of the dual function in leadership. There are many reasons behind this research. However, the foremost purpose of conducting the research is that corporate governance is a relatively new subject in Kuwait and not many people are aware of its company laws and legislation. Another reason is that the issue of duality is not specified in the legislation of corporate governance. ...
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