The purpose of this study is to investigate the influence of board characteristics on firms’ investment decisions.
Design Methodology Approach
The study used data sourced from annual reports of firms listed on the Ghana Stock Exchange from 2014 to 2018. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by a regression analysis which forms the main data analysis.
The multiple regression analysis results indicated that the proportion of independent directors and financial experts on the board are negatively related to firm investment. These findings imply that independent directors and financial experts on the board can help firms reduce overinvestment and improve investment efficiency.
The extant literature shows that the board of directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been little research on the role of the board of directors in corporate investment policy.
This research work has been carried out based on the support of Woosong University’s Academic Research Funding in 2020.
Agyei-Mensah, B.K. (2021), "The impact of board characteristics on corporate investment decisions: an empirical study", Corporate Governance, Vol. 21 No. 4, pp. 569-586. https://doi.org/10.1108/CG-04-2020-0125
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