Board of Directors and Performance of Public and Semi-Public Enterprises in Chad (MANAGEMENT CONTROL, AUDITING AND FINANCE REVIEW (MCAFR))

Summary

• The study is based on a survey of 20 public and parapublic companies in Chad over the period 2020-2023.p.1
• The average firm has a return on assets of 4.31%, a mixed board with 38% of directors, and an average board size of around 10.p.14
• Chad's public enterprises multiplied during the oil exploitation period (2003-2016), which encouraged the creation of new entities.p.2
• Presence of women on the board (PFCON) has a positive relationship with ROA, significant at the 1% threshold (beta 0.1122).p.17
• The Hausman test probability of 0.0006 is below the 5% threshold, indicating a model with fixed individual effects.p.17

Key insights

1. In most Chadian public and parapublic companies, opacity in how the board functions reduces its effectiveness and may affect enterprise performance.p.3
2. Women's presence on the board has a positive and statistically significant effect on financial performance measured by ROA.p.17
3. Women's presence has no significant effect on ROE, contrary to the first hypothesis.p.18
4. Board size is found to influence performance negatively, contrary to agency theory predictions.p.21
5. Sector of activity has no effect on the performance of the public enterprises studied.p.21
6. The author suggests that the State define rules of good governance so that board size and women's presence can play their role in favour of performance.p.22
7. Companies in the sample were chosen on a convenience basis, from those whose managers agreed to answer the survey.p.11