Is CEO power important in the relationship between corporate governance and firm performance in Jordan?
List of Authors
  • Ahmad Mohammad Hasan Aldegis , Yuvaraj Ganesan

Keyword
  • Firm performance, corporate governance, CEO power, nomination and remuneration committee (NRC), risk management committee (RMC)

Abstract
  • This study presents a conceptual framework for understanding a firm's performance is impacted by the nomination and remuneration committee (NRC), risk management committee (RMC) and the moderating role of CEO power. The research sample will consist of 68 non-financial public companies that were listed on the Amman Stock Exchange between 2017 and 2020. Tobin's Q and ROA will also be used to assess firm performance. While NRC, RMC, and CEO power data will be manually obtained from yearly reports. The study will evaluate the panel data using four alternative statistical models: fixed effects, random effects, pooled OLS, and robust standard errors. This study expecting that NRC and RMC will positively affect the business performance. Further, anticipating that the CEO power positively moderate the relationship between corporate governance (NRC and RMC) and firm performance. This study fills a gap in the literature by evaluating the association between NRC and RMC traits and firm performance because research on the topic in Jordan has been ignored. This study will analyse the moderating influence of CEO power in the connection. The results of this study can be somewhat applied to the contexts of other developing countries due to the common features of the business environment. This study is also the first to be conducted in Jordan since the corporate governance laws were changed in 2017 to include certain NRC and RMC requirements.

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