THE RELATIONSHIP BETWEEN THE BOARD OF DIECTORS AND FINANCIAL PERFORMANCE OF A MINING COMPANY

Abstract

The performance of the Board of Directors can be determined by the financial performance of the company. Recently, there has been a lot of talk about the insufficient governance of state-owned companies in Mongolia. The independent variables are the size of the Board of Directors, the number of female members on the Board of Directors, the independence of the Board of Directors, the overlap between the CEO and the Board of Directors, the number of Board meetings, and the size of the company’s state ownership, and the control variables are the size of the company and the age of the company. Depending on the company, the variables are return on equity (ROE), return on assets (ROA), and net profit (NPM). The study results confirmed the hypothesis that the performance of the Board of Directors has an impact on financial performance. However, the hypothesis that the appropriate structure of the Board of Directors determines good governance cannot be fully confirmed and determined in the current situation. This is because an appropriate board structure, or an appropriate governance structure that can produce high results, is considered a proven assumption in countries with a high average governance rating.