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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Author(s)
Ngonidzashe Chiranga, Oscar Chiwira
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DOI:10.17265/2328-7144/2014.06.003
Affiliation(s)
Ngonidzashe Chiranga, lecturer of Economics, Tshwane University of Technology, Polokwane, South Africa.
Oscar Chiwira, Dean Faculty of Commerce, BA ISAGO University College, Gaborone, Botswana.
ABSTRACT
The study investigates the plausible link between multiple directorships and company performance for Johannesburg Stock Exchange (JSE) listed companies in South Africa. This study also interrogates whether companies with busy boards perform better or worse than non over-boarded companies. The incidence of multiple directorship on JSE is low, therefore the hypothesis is rejected at 5%. Over-boarded company directors attend significantly less board meetings. The Pearson correlation between connectedness and log-transformed financial ratios is not significant between all the six financial ratios. The study finds no difference in performance between over-boarded and non over-boarded companies, and no association between multiple directorships and company performance.
KEYWORDS
corporate governance, multiple directorships, board of directors, board effectiveness, company performance
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