Shariah Compliance and Ownership as Moderators of Board Characteristics and Firm Performance: A Moderated Moderation Model

Abstract

The purpose of research is to study how the board characteristics conditionally impact firm performance with primary moderator ownership concentration and secondary moderator shariah compliance in the Pakistani equity market from 2010 to 2021. The study entails board characteristics, including the size of the board, women's directorship, independent audit committees, and independent non-executive directors. It employs Tobin’s Q (TQ) as a measure for firm value and the moderated moderation model 3 of Hayes (2017) to determine the conditional effect. The results show significant negative conditional effect of board size and positive significant conditional effect of female representation on TQ, and insignificant conditional effects of independent audit committees and independent directors on TQ.