Effect of Board Structure on Board Performance in Malawi

Purpose: This study analyses the effect of board structure elements on board performance in Malawi, an Emerging economy.

Design/Methodology/Approach: The research adopted the cross sectional survey design. Data were obtained from 174 directors drawn from board members of Malawi stock exchange listed entities, state owned enterprises, private companies and non governmental organisations. Multiple regression analysis was employed to test the impact of board structure on board performance.

Findings: Results demonstrated that board structure plays a significant role on board performance. Specifically, the study found positive and significant association between board size, board diversity and board performance, but failed to find significant evidence to link board composition, CEO duality, audit committee and board performance.
Implications/Originality/Value: The research outcome suggest that to improve board performance in Malawi, owners/shareholders must constitute the right board size that is also well diversified.