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Corporate governance and performance of UK listed small and medium enterprises

Afrifa, G.A., Tauringana, V. (2015) Corporate governance and performance of UK listed small and medium enterprises. Corporate Governance, 15 (5). pp. 719-733. ISSN 1472-0701. (doi:10.1108/CG-03-2015-0029) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
https://doi.org/10.1108/CG-03-2015-0029

Abstract

Purpose – This paper aims to report the results of an investigation into the effect of corporate governance factors on the performance of listed small and medium-sized enterprises (SMEs), and examines whether this effect differs between the two sizes of business. Design/methodology/approach – The paper uses unbalanced panel data regression analysis on a sample of 234 SMEs listed on the Alternative Investment Market, for a 10-year period (2004-2013). Findings – The panel data analysis results show that for all SMEs, corporate governance factors – board size, chief executive officer (CEO) age and tenure and directors’ remuneration – are significantly associated with performance of SMEs. The results also suggest that while board size is associated with the performance of both small and medium enterprises, CEO age is significant only for medium firms and directors’ remuneration only for small ones, while CEO tenure and proportion of non-executive directors are not significant for either. Practical implications – Overall, the results imply that corporate governance factors affect the performance of listed SMEs. However, this effect differs significantly between small and medium enterprises. The findings have important implications for policymakers who prescribe corporate governance mechanisms for SMEs. Originality/value – The paper adds to existing literature on corporate governance of SMEs by establishing a relationship between firm performance and board size, CEO age, CEO tenure, directors’ remuneration and proportion of non-executive directors.

Item Type: Article
DOI/Identification number: 10.1108/CG-03-2015-0029
Uncontrolled keywords: Small to medium-sized enterprises, Corporate governance, Board of directors, Company performance
Subjects: H Social Sciences
H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School
Faculties > Social Sciences > Kent Business School > Accounting and Finance
Depositing User: Godfred Afrifa
Date Deposited: 21 Mar 2018 11:59 UTC
Last Modified: 29 May 2019 20:23 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/66501 (The current URI for this page, for reference purposes)
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