PERFORMANCE EVALUATION OF BOARD OF DIRECTORS PSYCHOLOGICAL PERSPECTIVE

Authors

  • Dr M. Mubashir Qadir Khan Former Faculty Member JSMU
  • Mr. Shariq Mubashir Professor Govt Islamia Law College

Keywords:

Board of Directors, Emotional Intelligence, Size of Board, Experience of Board Member, Education

Abstract

This research investigates the performance evaluation of company directors in family businesses, focusing on behavioral impediments to embracing corporate governance standards. The study aims to understand the psychological dynamics influencing board performance, examining the correlations between directorial duties, board structure, job satisfaction, responses to minority shareholder rights, and risk-taking behavior. The rationale stems from the recognized gaps in existing literature, necessitating a nuanced exploration of the psychological dimensions within family business boards. The research employs a quantitative approach, utilizing Pearson correlation coefficients to analyze relationships among key variables. Results indicate a significant positive correlation between the absence of clearly defined directorial duties and an unstructured board, contributing to diminished job satisfaction (r = 0.304*, p < 0.05). An unstructured board with lower job satisfaction correlates positively with a corporate personality responsive to minority shareholder rights (r = 0.574**, p < 0.01). Furthermore, an unstructured board with reduced job satisfaction is associated with a corporate personality more inclined to handle risks freely due to ego and overconfidence (r = 0.596**, p < 0.01). The study highlights the need for well-defined directorial roles to mitigate behavioral hindrances, fostering structured boards for enhanced governance and risk management in family businesses.

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Published

2023-12-31

How to Cite

Khan, M. M. Q., & Mubashir , S. (2023). PERFORMANCE EVALUATION OF BOARD OF DIRECTORS PSYCHOLOGICAL PERSPECTIVE. Journal for Business Education and Management, 3(2), 19–34. Retrieved from https://journals.csrpublisher.com/index.php/jbem/article/view/38