Are Independent and Non-Executive Directors Improving Corporate Governance and Firm Performance? An Evince from Bangladesh

This study has opted 25 companies (5 companies from each sector, namely, pharmaceuticals, engineering, cement, ceramics, and food) from all the companies listed on Dhaka Stock Exchange, and used the data for the years 2022 and 2023 to examine firms’ performance based on different setting of composition of board as a means of corporate governance. The used statistical measures were Pearson correlation, and Tobin’s Q to examine the firms’ performance associated with different composition of boards. The findings of this study reveal mixed outcome, that is, firms’ performances were generally positively affected by outside and independent directors, though sometimes not; the same mixed results are for executive and sponsor directors.