Board Attributes and Performance of Non-Banking Financial Institutions in Bangladesh: An Empirical Study

This paper examines the relationship between board attributes and performance of non-banking financial institutions in Bangladesh. Based on the economic perspective of agency theory, the study develops hypotheses to explain the board-performance relationship. With the sample of 40 firm-year observations, this study conducts regression analysis to investigate the relationship. Results of the study show the positive but least significant impact of board independence on firm performance. However, the associations of other board attributes with performance measures are insignificant which indicates the lack of effectiveness of board as a corporate governance mechanism to protect shareholders’ interests. Empirical findings of the study contribute in the scarce literature related to corporate governance in non banking financial institutions, and these have important policy implications to public and private policy makers to formulate appropriate corporate governance framework.