Title: The impact of board's human capital on the relationship between board's characteristics and firm's performance in Iran

Authors: Mahdi Salehi; Marziyeh Farzaneh

Addresses: Accounting Department, Ferdowsi University of Mashhad, Mashhad, 9177948974, Iran ' Accounting Department, Islamic Azad University, Mashhad Branch, Mashhad, 9177948942, Iran

Abstract: The current study aims to investigate the effects of board's human capital on the relationship between board's characteristics and firm's performance. The Q Tobin's and return on assets, which represent firm's performance, are considered as the dependent variables and independent variables include board's human capital, board dependence and managerial share ownership based upon a sample of 990 firm-year data from companies listed on the Tehran Stock Exchange from 2008 to 2014 using multivariate linear regression analysis, it is concluded that board's human capital positively affects the relationship between board's dependence and performance and also managerial share ownership and performance. The results indicate that firms benefit from board human capital in terms of outside directors' proficiency, validity, experience, specialty and knowledge to monitor and counsel managers.

Keywords: resource dependence theory; board's human capital; managerial share ownership; board dependence.

DOI: 10.1504/IJLIC.2018.10012556

International Journal of Learning and Intellectual Capital, 2018 Vol.15 No.4, pp.293 - 308

Received: 29 Jun 2016
Accepted: 27 Jun 2017

Published online: 25 Oct 2018 *

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