This study investigates the effect of board ownership and characteristics on firm performance (FP). It provides evidence on this effect using a sample of 96 of the most active listed Egyptian companies on the Egyptian Stock Exchange (EGX). The paper employs OLS and 2SLS regression analysis to test the association between board ownership and characteristics and FP measured
by three different measures namely return on assets - ROA, return on equity - ROE, and Tobin's Q. Board characteristics variables are statistically significant associated with FP when measured by ROA. Only one of the three 2SLS models developed in this study (ROA model) is significant. Regarding the two competing arguments related to the effect of board ownership on FP (namely
the interest alignment and the entrenchment effects), the argument of alignment effect was supported. Furthermore, findings from 2SLS regression models of FP when measured by ROA support the argument that non-linear relationship may exist between some variables of board ownership and characteristics from one side and FP from the other.
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