Abstract:
This study investigates the relationship between board structure and firm
performance in listed plantation companies in Sri Lanka. The main objective
of this study is to find out the relationship between board structure and firm
performance. This research discusses the role and the importance of boards
and how boards affect firm performance and internal corporate governance
mechanisms such as board size, board gender diversity, CEO Duality and
proportion of independent non-executive directors. Eighteen listed plantation
firms were selected as the sample size in the Colombo Stock Exchange for the
periods 2011, 2012, 2013, 2014 and 2015. Multiple regression analysis has
been employed to analyze the relationship between board structure and firm
performance. It indicates that the board size is positively associated with
Return on Assets and Return on Equity. However, the results reveal that the
separation of the two posts of CEO and chairman has a positive relationship
with the firm performance. It means when separate CEO Duality is existed
firm performance will increase. The obtained results report that the board
gender diversity has no significant relationship with firm performance and
proportion of independent non-executive directors show a positive
relationship with firm performance
