ABSTRACT

Corporate governance has become important for the successful operation of an organiza- tion in today’s globalized and competitive corporate environment. In periods of crisis, boards are expected to do more than merely oversee management. Companies with a high proportion of in- dependent directors tend to have better financial performance. The objectives of this study are to examine the impact of military directors on firm Performance. 2 objective is to investigate the moderating role of military directors and firm size in explaining firm performance. The 3 nd objec- tive of this Evaluate the opinion of decision-makers on the role of directors in firm performance. The mixed method approach was utilized in this research primary data through questionnaire was gathered from 10 military director firms and 10 nonmilitary directors’ firms, secondary data was obtaining from the official website of the 30 military and 30 nonmilitary director organization from 2011 to 2022 of their annual financial reports. The results and findings of this study there are 483 directors (66.16%) are classified as “Non-Military”. However, 247 directors (33.84%) are identi- fied as “Military,” designating those who have served in the armed forces. The results imply that military directors should exercise prudence in their leadership responsibilities since they have a considerable detrimental influence on the profitability of their companies. Businesses without mil- itary directors may do better financially, highlighting the complex link between military board membership and different business results. To fully investigate the underlying dynamics and ram- ifications of these disparities, further investigation is required. In the conclusion the detrimental effect on Return on Assets (ROA) emphasizes how crucial it is for leaders to take commercial acumen into account. The diversity on corporate boards is shown by the distribution of directors, the majority of whom are not in the armed forces. Businesses with non-military directors have the potential to do better financially. The results provide insightful information on corporate govern- ance procedures and urge further investigation to fully understand the underlying dynamics.