Board influence on a firm’s long-term success: Iran evidence

Despite extensive investigation of the relationship between boards of directors and firm performance, empirical evidence on whether and how boards contribute to the long-term success of firms is scarce. Using Liu et al.'s model (۲۰۲۰) and ۳-year panel data of petrochemical companies admitted to the Tehran Stock Exchange, this study investigates the effects of the potential and dynamics of the board of directors and the key factors of the effectiveness of the board of directors on the investment efficiency of companies. pay Our evidence showed that board dynamism and potential have a strong positive relationship with firm's investment performance. These findings support the view that firms' resources and internal processes that enable boards to use these resources to solve complex issues are related. It is essential for the long-term success of a company.