Abstract
This study attempts to take a close look on corporate governance, board practices and performance of shipping firms in Bangladesh. The study has conducted a survey on 24- shipping firms operated in Bangladesh and collected perceptional data from top tier executives and factual data from firms balance sheet and income statement. The results of descriptive statistics show that most of the firms’ managers are not aware about the corporate governance and board practices of the firm. Moreover, there is significant lack of transparency in the board practices documented among the shipping firms in this study. The results of regression analysis confirm that board ownership, board leadership, board size, and firm size have significant impact on firm performance. Moreover, factual analysis results show that board leadership has significant impact on firm performance. However, this study also confirmed that board composition has no significant impact on firm performance in the context of Bangladeshi shipping firms. Thus, this is of the essence to spotlight on corporate governance policies in the shipping firms to make legal aspects of board practices to escalate the growth of shipping industry in Bangladesh.
5. Conclusion and policy implications
The prime objective of this study is to investigate the relationship corporate governance, board practices and firm performance in the context of Bangladeshi shipping firms. According to that, the study was designed to investigate relationship based on factual data and management perceptional data. The study has highlighted top-level managers of shipping firms as they are decision makers as well as will ensure practices of firms’ governance. The results of descriptive statistics show that most ofthe firms’ managements are not attentive about the awareness of corporate governance practices. This study finds existence of CEO duality, and other board members’ active participation in different management positions in Bangladeshi shipping firms. Therefore, results confirm continuation of less corporate governance practices and carrying less transparency in board practices. This study also conducted a regression analysis to examine relationship dynamics among corporate governance, board practices and firm performance. The results show that all the explanatory variables in this study have significant effects on firms’ performance except board composition. The results of perceptional regression analysis show that board ownership, board size, board composition and firm size have insignificant relationship with firm performance. These results show complete perplexity in many aspects about the corporate governance awareness level among top managers of shipping firms’. Hence, regression findings are consistent with the descriptive statistics results of different variables in this study. However, the study finds positive and significant relationship of board leadership and firm performance. Management believes that board leadership obviously enhances firm performance with positive coefficient.
