Board ownership and financial performance relationship

What is it about?

This paper models the board ownership and performance relationship in Bangladesh listed firms using a simultaneous equations approach. Consistent with recent literature we document a ‘reverse-way’ causality of relationship. However, performance does appear to have a significant negative impact on ownership. These results imply that despite huge governance differences between Bangladesh and developed economies there is similarity in ‘internal governance mechanisms’.

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Why is it important?

This was the pioneer study on Bangladesh listed firms.

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