Director charter and firm performance: evidence from Canada
Sentes, Matthew Kurtis
University of Lethbridge. Dhillon School of Business
Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business
This paper examines the relation between director certification and firm performance, innovation and earnings management of companies listed on the Standard & Poor’s/Toronto Stock Exchange (S&P/TSX) Composite Index from 2010-2017. Using a panel regression, 2SLS and the Heckman model, I find that director certification has no significant relation to financial performance, innovation levels or earnings management. Additionally, industry regulation does not appear to impact the relationship between chartered directors and firm performance. Furthermore, there is a weak positive relationship between chartered directors and financial performance in firms with multiple complex operations compared to those that are less complex operations. This overall insignificance of chartered directors on firm performance holds for a variety of robustness checks.
finance , corporate governance , director certification , firm performance , chartered directors