Role of Directors Skills Diversity in Firm Performance: A Comparative Study

Authors

  • Farman Ullah PhD Scholar Department of Accounting & Finance, Abdul Wali Khan University Mardan, KP, Pakistan
  • Dr. Muhammad Ibrahim Khan Assistant Professor Department of Accounting & Finance, Abdul Wali Khan University Mardan, KP, Pakistan
  • Dr. Shehzad Khan Associate Professor Department of Accounting & Finance, Abdul Wali Khan University Mardan, KP, Pakistan

DOI:

https://doi.org/10.35484/pssr.2023(7-III)10

Keywords:

Directors Skills, Firm Performance, Shariah Complaint

Abstract

This study investigates the impact of director skills diversity on firm performance in both Shariah-compliant and conventional firms within emerging Islamic markets, covering Pakistan, Malaysia, Indonesia, and Bangladesh from 2009 to 2018. It explores various director skill sets, including industry experience, expert skills, management proficiency, and economic acumen, and their associations with performance metrics such as Return on Assets (ROA), Return on Equity (ROE), and Tobin’s Q. The results reveal a significant positive association between board skills and firm performance, particularly in Shariah-compliant firms. Directors with expertise in Islamic finance and ethics play a crucial role in aligning decisions with Shariah principles, contributing to long-term value creation. This research offers insights for regulators, strategists, and stakeholders in shaping corporate governance practices and decision-making in diverse market contexts.

Vol. 7 No. 3 (2023): July to September

Downloads

Published

2023-09-30

Details

    Abstract Views: 137
    PDF Downloads: 108

How to Cite

Ullah, F., Khan, M. I., & Khan, S. (2023). Role of Directors Skills Diversity in Firm Performance: A Comparative Study. Pakistan Social Sciences Review, 7(3), 113–125. https://doi.org/10.35484/pssr.2023(7-III)10

Issue

Vol. 7 No. 3 (2023): July to September

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Open Access

RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) adheres to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in PSSR agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International license). Under this license, the authors published in PSSR retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of PSSR are required to cite author(s) and publisher in their work. Therefore, RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) follow an Open Access Policy for copyright and licensing.

Creative Commons License

Signatory of DORA