Abstract

This study aims to investigate the impact of the presence of governance committee (GC) and risk management committee (RMC) on company performance, as measured by return on assets (ROA), return on equity (ROE), and Tobin’s Q. Also, it evaluates how CEO tenure moderates the influence of these board committees. The sample consists of all non-financial companies listed on the Amman Stock Exchange (ASE) during 2018-2022, totalling 320 firm-year observations. The current research implements multivariate panel data regression techniques for hypotheses testing, and the least absolute value (LAV) regression is used as a robustness test. The findings reveal that both GC and RMC have positive and significant associations with company performance indicators, which means that the new Corporate Governance Code (CGC) issued in 2017 contributes to increase the performance of the listed firms on the ASE. In addition, the present study furnishes conclusive evidence that CEO tenure weakens the positive nexus between CG, RMC, and firm performance. The practical insights derived from the findings have substantial policy implications for government agencies, policymakers, board members, public corporation executives, and shareholders. To the best of the current author's knowledge, this study is among the first empirical research in Jordan that investigates the effect of GC and RMC on firm performance, alongside the moderating influence of CEO tenure.

Keywords: CEO tenure, company performance, corporate governance code, Jordan, governance committee, risk management committee.

How to Cite:

Toumeh, A. A., (2025) “The Recent Corporate Governance Code and Company Performance: CEO Tenure as a Moderator”, Australasian Accounting Business and Finance Journal 19(3): 9, 186–214. doi: https://doi.org/10.14453/aabfj.v19i3.09

Rights:

In Copyright