This study aims to investigate the relationship between characteristics of board of directors as outlined in the Jordanian Corporate Governance Code and their effect on firm performance. Specifically, it will examine the role of the board of directors in enhancing performance by looking at factors like board independence, size, family membership, meetings, CEO duality, and nominations/compensation committees. The researchers hypothesize that there are positive relationships between these characteristics and firm performance based on prior literature. Good corporate governance is important as it can protect shareholders, manage resources, attract investors and capital, and improve performance.

1. Mohammed Hassan Makhlouf(1) ,
Nur Hidayah Binti Laili(2) , Mohamad Yazis Ali Basah(3)
(1) Ph.D candidate. (2), (3) Assistant Professor.
Faculty of Economics and Muamalat
Universiti Sains Islam Malaysia (USIM)
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2. This study aimed to investigate in the relationship
between the characteristics of board of directors' as a
component of Jordanian Corporate Governance Code
(JCGC) and its effect on firms performance.
Examine the role of board of directors in enhancing
and improving the firms performance.
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3.  Good corporate governance helps the firms to
Protect the shareholders interests.
Manage resources.
Attract new investors and capital funds.
Achieve better performance.
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4. Board of
director's
independence
Board of
director's size
Family members
at Board of
director's
Board of
directors
meetings
Nominations &
Compensation
Committee
Firm
Performanc
e
CEO Duality
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5.  Importance of independence.
Independent members in JCGC.
Independent members and firm performance at previous
literature.
H1: There is a positive relationship between independence
of board of directors members and firms' performance.
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6. Board of directors' size in JCGC.
Optimal Size (Large or Small)
Board of directors' size and firm performance at previous
literature.
H2: There is a positive relationship between board of
directors' size and firms' performance.
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7.  Existence of family members at the board of directors and
firm performance at previous literature.
H3: There is a positive relationship between existence of
family members at the board of directors and firms'
performance
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8. Board of directors meetings in JCGC.
Board of directors meetings and firm performance at
previous literature.
H4: There is a positive relationship between frequency
board meetings and firms' performance.
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9. CEO duality in JCGC.
 CEO duality and firm performance at previous literature.
(Healthy or not)
H5: There is a positive relationship between CEOs dual and
firms' performance.
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10. Nominations and Compensation Committee in JCGC.
Existence of Nominations and Compensation Committee
and firm performance at previous literature.
H6: There is a positive relationship between Existence of
Nominations and Compensation Committee and firms'
performance.
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11. According to previous studies, when the firms' commitment with the
characteristics' of board of directors is consider a significant factor to support
and improve the firms' performance. There are some factors supporting this;
 Electing the members according to their experience and qualifications.
 Should be a clear separation among the positions of CEOs and chairman.
 Set of committees should be existence to monitor the firm's business such as
audit committee and nominations and compensations committee.
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12. CORPORATE GOVERNANCE IN JORDAN?
JCGC issued in 2008.
 Came into effect on 1st of
January 2009.
Its prepared in view of:
Development of the national
economy in Jordan at all levels.
 To develop the national capital
market and its regulatory and
organizational framework.
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