Uncovering the Board’s Role: The Use of Confirmatory Factor Analysis As An Investigative Tool In Malawi

Abstract

The main purpose of this study is to analyse the key Board roles that improve
the performance of directors in Malawi. The research investigates tasks that the board must
execute to enhance its performance, ultimately contribute to the achievement of entity’s
strategic goals. The study adopted the cross sectional survey design. A questionnaire was
used to collect data from 174 board members who were drawn from board of directors from
stock exchange listed companies, state owned enterprises, private companies and non
governmental organisations. Data was analysed using IBM SPSS version 20. Descriptive
and Confirmatory Factor Analyses were used to determine the key roles of the board.
Findings suggest that the control, strategic and service are the key board roles in Malawi.
The results further show that the control role is more significant than the other two roles.
Using perceptions of the board, this study renders initial verifiable evidence of the
significant roles of the board in Malawi. As such, the outcome of this study will be of
interest to many corporate governance stakeholders including shareholders, board members,
academia and regulatory bodies..