| Abstract [eng] |
The master's thesis examines the influence of the board structure on the financial results of companies included in the NASDAQ Baltic list. The study proposes two hypotheses: the first hypothesis states that there is a reversed U-shaped relationship between board size and company performance, and the second hypothesis states that the greater the independence of the board, the better the company's performance. The aim of the work is to determine the significance and direction of these relationships. The simple linear regression model is used for the analysis, which, after reviewing similar studies, is suitable for research on the influence of the board structure on the company's performance. The selected regression model allows to estimate the correlation coefficients, to determine their significance and to understand the strength and direction of the relationships between the studied variables. Control variables are also included in the analysis to account for other factors that may influence the relationship between the dependent and independent variables. Regression analysis indicated insufficient evidence to support the first or second research hypotheses. Board size and greater board independence are not related to better company performance. However, some of the selected control variables, including return on equity (ROE) and the firm's debt-to-equity ratio (DE), consistently showed a statistically significant relationship with firm financial performance. The findings of the study emphasize the significance of these financial indicators in shaping the company's performance - higher ROE and DE may worsen the company's financial results. In addition, these financial indicators have a greater influence on the performance of the company than the variables determining the structure of the company's board in the scope of the studied companies. For this reason, the conclusions emphasize the importance of effective financial management practices in optimizing company performance for listed companies located in the Baltic region. The master's thesis ends with recommendations for further research and analysis. It is recommended to delve deeper into the relationship between the composition of the board and the performance of the company in the Baltic region. The study also highlights the need for more comprehensive cross-country analysis across different variables and geographies to obtain more clear results on the impact of board composition on firm performance. |
