Abstract:
The aim of this study is to analyze the impact of board structure on corporate financial
performance special reference from Manufacturing and Plantation sector listed in
Colombo Stock Exchange period span from 2010 to 2012. This study embraces four
board characteristics which are Portion of outside Directors, Board Size, Board
Ownership and CEO Duality used as independent variables and Earning per Share and
Return on Equity are used as dependent variables to measure the financial
performance of firms.
A multiple regression model is designed to test the relationship between the board
structure and financial performance. Empirical findings reveal that Board ownership
except other selected board characteristics which are CEO Chairman Duality,
Proportion of outside Directors and Board Size, rejects the null hypothesis. It means
that board ownership only has significant positive impact on finance performance but
other selected board characteristics do not appear to have any significant impact on
Finance performance.
