International Journal of Law and Management Pub Date : 2020-11-25 , DOI: 10.1108/ijlma-06-2019-0145 Mejbel Al-Saidi
Purpose
This paper aims to reduce the knowledge gap by using a large sample and different regressions while controlling the endogeneity and causality issues.
Design/methodology/approach
This study used the ordinary least square (OLS) and two stage least squares (2SLS) regressions to control the endogeneity and causality problems; this estimation strategy allows for comparison of both estimates to identify any inconsistency and biases in the parameters.
Findings
General speaking, this study found that board independence negatively affected firm performance based on Tobin’s Q only and the relationship between the two variables ran from board independence to firm performance but not vice versa.
Originality/value
The current independent directors are not adding value to Kuwait’s listed firms. Some directors who represent large shareholders and the conflict between large shareholders and small shareholders could affect the role of independent directors in Kuwait. To best of the researchers’ knowledge, this study is the first to consider board independent after controlling the issues of endogeneity and causality in Kuwait; thus, the results could be useful for Kuwaiti firms, regulators and policymakers.
中文翻译:
董事会独立性和公司绩效:科威特的证据
目的
本文旨在通过使用大量样本和不同的回归方法来减少知识差距,同时控制内生性和因果关系问题。
设计/方法/方法
本研究使用普通最小二乘(OLS)和两阶段最小二乘(2SLS)回归来控制内生性和因果关系问题。这种估计策略允许比较两个估计,以识别参数中的任何不一致和偏差。
发现
总体而言,这项研究发现,董事会独立性仅基于托宾Q对公司绩效产生负面影响,两个变量之间的关系从董事会独立性到企业绩效,反之则不然。
创意/价值
目前的独立董事并没有为科威特的上市公司增加价值。一些代表大股东的董事以及大股东和小股东之间的冲突可能会影响独立董事在科威特的作用。据研究人员所知,该研究是第一个在控制科威特内生性和因果关系问题之后考虑独立于董事会的研究。因此,结果对于科威特公司,监管机构和决策者可能是有用的。