| dc.description.abstract | Firm value is investor perception towards the company’s degree of success as reflected
in share price for publicly listed companies. This research postulates that firm value is
affected by corporate board characteristics, ownership structure, and voluntary
disclosure as the mediating variable. However, this is not evidently clear through
empirical research. This study was anchored on agency, signalling, upper echelons, and
pecking order theories. The study used the positivism research philosophy and
correlation research design. The target population comprised 104 firms listed in the
EASE. Annual data was gathered over the period 2011 to 2020 ad analysed using descriptive
statistics that include means, standard deviation, minimum and maxims, and inferential
statistics using Pearson correlation and regression analysis. Correlation results show that
board diversity, and composition involving non-executives independent on the risk
management committee have positive and significant correlations with Tobin’s Q,
ROA, and ROE. Voluntary disclosures among the listed EASE firms depicted a
significant correlation with Tobin’s Q and an insignificant correlation with ROA or
ROE. Board size, board gender diversity, board independence, and the presence of nonexecutive independent composition on the risk management committee had a
significant influence on voluntary disclosures and firm value except chairperson
duality. Ownership structure, foreign ownership, institutional ownership, managerial
ownership, and government ownership have a positive and significant effect on
voluntary disclosure. Institutional ownership had a positive and significant effect on
firm value whereas foreign ownership, managerial ownership, and local ownership
were statistically insignificant. Government ownership indicated a negative and
statistically significant effect on firm value. Voluntary disclosure has full mediation on
the relationship between ownership structure and firm value using Tobin’s Q and partial
mediation using ROA. The study concluded that all the corporate board characteristics
influence voluntary disclosures and firm value of listed firms. It further concludes that
local, government, managerial, institutional, and foreign ownership influence social
and board information disclosures. A conclusion is further made that institutional
ownership affects firm value. The study recommends proper structuring, creation, and
optimization of board structure in terms of optimal board size, a combination of
independent and non-independent directors, and composition of the board in terms of
gender and expertise to enhance voluntary disclosure. Additionally, the study
recommends that listed firms ought to embrace the institutional and managerial form of
ownership as it promotes voluntary disclosure of information. Compared to other forms
of ownership structure, institutional and managerial ownerships are likely to improve
price discovery, increase allocative efficiency, knowledge creation and sharing, and
promote management accountability. The creation of the board should be guided by key
parameters that include the size of the board, expertise and competence, independence,
and diversity among other critical aspects of an efficient board. The study findings made
a significant contribution to empirical literature and theoretical underpinning. The study
established that board characteristics and voluntary disclosure of information have
significant influence on firm value among the listed firms supporting the agency theory.
In addition, the findings support the postulation of the signaling theory on the
importance of voluntary disclosure on firm value. | en_US |
