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The Effect of Foreign Directors on Financial Performance
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The Effect of Foreign Directors on Financial Performance
The Effect of Foreign Directors on Financial Performance
Journal Article

The Effect of Foreign Directors on Financial Performance

2022
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Overview
This study investigates the effect of foreign directors on the financial performance of non-financial companies registered on the London Stock Exchange. Therefore, the main objective of this study is to show the effect of executive and non-executive foreign boards of directors on the firms' financial performance across the period from 1999 to 2021, and across 31 sectors. Using a sample from the non-financial companies listed on the London Stock Exchange (FTSE 350), consisting of 5,359 observations for 233 companies from the period 1999 to 2021, we found that the percentages of the executive and non-executive foreign directors are stable across the period; however, they are changing across 31 sectors. Moreover, the results show that the financial performance is positively affected by the percentage of executive foreign directors, but not significantly affected by the percentage of non-executive foreign directors.
Publisher
جامعة عين شمس - كلية التجارة - قسم المحاسبة والمراجعة