An-Najah University Journal for Research - B (Humanities)


This paper investigatedthe relationship between board characteristics and corporate performance of firms in Palestine. The degree to which the board iseffective in performing its duties and tasks depends on several factors manifested by certain characteristics. consistent with the stewardship theory where the board plays a supportive role by empowering executives leading to,potentially,higher performance. In this context decisions are executed faster, the ambiguity between the processes and the objectives of the firm is reduced and performance is enhanced. Our results have an implication to any future corporate governance codesetting.The stewardship theory not the agency theory should guide the lawmakers in constructing any newlegislation related to corporate governance. Particularly, this research examinedthe impact of CEO duality, board size, board independence, board gender diversity, board academic background, and frequency of board meetings on the level of corporate performance. The sample encompassedall firms listed in the Palestine Stock Exchange (PSE) with available data for the years 2012 to 2014 with total 141 firm-year observations. The data was manually collected from the audited annual reports downloaded from PSE website. Generalized least square estimators wereobtained for the multiple-linear relationship between board characteristics and firm performance. The results indicate that corporate performance of Palestinian listed firms is positively related to board duality, board gender diversity, and number of board meetings.Meanwhile, board size, board independence and board academic background seem to negatively affect performance. The results are