Proceedings of 9th Asian Business Research Conference

Proceedings of 9th Asian Business Research Conference
20-21 December, 2013, BIAM Foundation, Dhaka, Bangladesh ISBN: 978-1-922069-39-9
Impact of CEO Duality and Board Independence On
FTSE Small Cap & Fledgling Company Performance
Mabel D’ Costa
The purpose of this empirical study is to explore whether there is any association of
CEO duality and board independence with corporate financial performance. The
sample consisted of 157 FTSE Small Cap and Fledgling companies between 2007
and 2009. The benchmark test performed was quantile regression coupled with OLS
and pooled regression. The results give partial evidence on CEO duality having a
positive impact on firm’s accounting performance measured by ROA. In contrast,
board independence has no significant association with firm’s financial performance
similar to the finding for board size. Control variable sales showed a significant
positive and negative relationship with firm performance hence it is inconclusive
whether larger firms perform better.
Field of Research: Corporate Governance, Finance
Mabel D’ Costa, Lecturer, School of Business, North South University, Plot 15, Block B, Bashundhara, Dhaka 1229,
Bangladesh. Email: