Assessing the Impact of Board Characteristics on FirmPerformance: Evidence from Gulf Countries

Purpose: The purpose of the research is to measure the effect of board composition on business value in corporate governance. The primary objective is to determine how board features influence a firm’s performance, focusing on measuring business governance and its relationship with a firm’s financial worth. Design/Methodology/Approach: Secondary data from 25 listed companies of Gulf countries from 2019 to 2021 and ESG and board characteristics were gathered. A panel data regression technique with fixed and random effects was utilized for the analysis. Findings: The findings of the study showed that a company’s performance in terms of accounting- and market-based performance indicators is significantly influenced by the governance features of businesses. Board characteristics like board combination of directors, board gender diversity, and ESG pillar scores were discovered to be positively correlated with the firm’s value. Two crucial factors are the diversity of gender among executive members and board independence for figuring out the firms’ performance (ROA) in Gulf Countries. Research Limitations: The research is limited to 25 listed companies of Gulf countries from 2019 to 2021. Managerial Implications: Maintaining a knowledgeable and diverse board improves governance and decision-making, allowing managers to generate long-term value. Efficient board composition also promotes better risk management and transparency, leading to improved financial performance. Originality/Value: The study will enhance academic understanding and assist businesses in improving governance frameworks while informing legislative changes that ensure a stable and productive business climate