Examining the Effect of Board Characteristics as One of the Corporate Governance Mechanisms on Shareholder Value

Abstract

The aim of the study is to illustrate the effects of board characteristics on the shareholder value. The independent variables are board experience, CEO duality, board size, board composition, and gender diversity. On the other hand, the dependent variable is shareholder value. Furthermore, the study contains statistical analysis and empirical studies to identify the characteristics that affect shareholder value measured by Tobin Q. In addition, the study includes testing hypothetical conditional related to five variables effects on the shareholder value. Moreover, the used sample consists of Egyptian Stock Market (EGX 100) in the period from 2017- 2021. The result of the study shows that some of the independent variables as board experience and board size have a significant positive relationship with shareholder values while board composition and gender diversity have a negative relation with it. However, the CEO duality was excluded from the SPSS model. Research only focuses on various companies in the Egyptian market that covers 42 non-financial companies from EGX100 during a specific period from 2017-2021 and investigates the effects of board characteristic on shareholder value for only instance size, education and nationality areas measured by Tobin Q. In conclusion, the research contributes to highlight specific board characteristics that affect shareholder value as board experience, CEO duality, board size, board composition, and gender diversity measured by Tobin Q through using a sample from EGX100 in 2017-2021.