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Central European Management Journal

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Year 07.2020 
Volume 28 
Issue 2

Structuring Corporate Boards: Some Facts and Determinants from the Macedonian Setting

Bobek Suklev

Stojan Debarliev

https://orcid.org/0000-0003-4557-8204

Ljubomir Drakulevski

07.2020 28 (2) Central European Management Journal

DOI 10.7206/cemj.2658-0845.22

Abstract

Purpose: Knowing the factors that might affect board structure is an important step in understanding
boards and their role in corporate governance. This research aims to examine the effect of firm
characteristics closely related to corporate governance mechanisms, such as the model of corporate
governance, shareholder capital concentration, and stock exchange listing on board structure variables (size, independence, and gender diversity).

Methodology: The sample of this study stems from large Macedonian joint-stock companies. We run
a hierarchical linear regression of board characteristics on common demographic firm characteristics
as control variables and contextual firm characteristics related to corporate governance mechanisms
as independent variables.

Findings: Joint-stock companies in the Republic of North Macedonia have relatively small boards,
which provide no positive effects that would originate from the larger number of board members.
Moreover, the number of outside independent members is small, insufficient to influence the boards
with greater objectivity, independence, and quality. Larger companies with a one-tier model have
statistically significant larger corporate boards and a larger number of independent directors.

Implications: The best corporate governance practices worldwide must be used as a basis for future
improvements of corporate governance in joint-stock companies in developing economies.

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Structuring Corporate Boards: Some Facts and Determinants from the Macedonian Setting. (2020). Structuring Corporate Boards: Some Facts and Determinants from the Macedonian Setting. Central European Management Journal, 28(2), 57-82. https://doi.org/10.7206/cemj.2658-0845.22 (Original work published 07.2020AD)

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“Structuring Corporate Boards: Some Facts And Determinants From The Macedonian Setting”. 07.2020AD. Central European Management Journal, vol. 28, no. 2, 2020, pp. 57-82.

Chicago style

“Structuring Corporate Boards: Some Facts And Determinants From The Macedonian Setting”. Central European Management Journal, Central European Management Journal, 28, no. 2 (2020): 57-82. doi:10.7206/cemj.2658-0845.22.