Browsing by Author "Pamburai, Place"

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    Exploring the role of board diversity in reducing the agency problem and strengthening firm value: A case study of Namport
    (University of Namibia, 2021) Pamburai, Place; Kaupa, Stewart Peter
    Corporate governance plays a significant role in every organisation. One notes that, corporate governance is a way in which an organisation is governed, the manner in which management is controlled, the way in which organisational goals are set so as to ultimately attain the set objectives. Corporate governance is perpetuated through the interaction between various participants who aid in the effective crafting of the organisation's performance. This interaction is only successful if there is good communication between shareholders and managers, so that effective communication pertaining the success of the organisation and governance of the organisation's various resources can be effectively safeguarded. Henceforth, this study determined the effectiveness of board diversity in reducing the agency problem and strengthening firm value at NamPort. A mixed methods approach was used in the study. The respondents were sampled from a population of the board members, the management and government officials. The study analysed the data using Statistical Package for Social Sciences (SPSS) and the key findings from this study reveal that it is apparent that board diversity plays a pivotal role in the crafting and execution of corporate governance of any organisation as it entails the enrichment of the make-up and composition of a board which in turn enables effective execution of roles and responsibilities of the organisation as a whole. The outcome of this study shows that, board diversity does not play a major role in reducing the agency problem and strengthening firm value at NamPort. Furthermore, the study established that there is a desperate need to implement diversity in the board in order to reduce the agency problem and strengthen firm value. In addition, the study concluded that the main challenges to principally implement corporate governance are mainly transparency and fairness, as was indicated by the participants of this study. Board transparency helps in alleviating the agency problem in general. A board that exercises transparency in its duties gains trust from the shareholders and employees at large. The study recommended training and development should become a priority, it emerged from the study that there is a lack of knowledge and skills to effectively manage and execute corporate governance in the organisation. Drawing lessons from other successful countries that have championed diversification of their board structures thereby strengthening firm value and effective corporate governance