The moderating effect of board diversity on the relationship between executive committee characteristics and firm performance in Oman: Empirical study

Abstract

This study focuses to achieve an important objective by examining the moderating effect of board diversity (foreign member on the executive committee and executive committee commitment) on the relationship between executive committee characteristics and firm performance in Omani companies excluding those categorized under the financial sector. The sampling covers two years, 2011 and 2012. This study used multiple regression and hierarchical multiple regression to analyze the association between independent, moderating and dependent variables. Based on the findings, a positive association between executive committee independence, executive committee meeting and firm performance is revealed although it is not significant. In the same context, the finding revealed a negative relationship between executive committee size and firm performance but not significant. Moreover, the board diversity moderated the relationship between executive committee characteristics and firm performance but the effect is not significant. Finally, this study offers recommendations for future researchers at the end.