2.1.IntroductionIn the agency’s problems among Shareholders & Administration by

2.1.IntroductionIn this literature review section inspect the works done by previous researchers in relation to the effect of panel characteristics on monetary performance. There are number of studies have been inspected relating to this topic on other countries (Al-Matari, Al-Swidi , Fadzil, & Al-Matari, 2012), (Anis, Chizema, Lui , & Fakhreldin, 2017 ), (Ilina, Berezinets, & Cherkasskaya, 2017), (Kakanda, Salim, & Chandren , 2016). Though the number of research projects in Sri Lanka is low.  2.2. Theoretical LiteratureThe panel of directors is an important part of a corporation. According to (Haider & Fang , 2016)the key role of the panel of directors is to reduce the agency’s problems among Shareholders & Administration by monitoring and consulting of key officials.A panel of directors is appointed to oversee the activities of a firm (Nazar, 2014). The directors have duties and responsibilities.Work at firm’s greatest interest, defensive the interests of shareholders, Participate in panel meetings and participate in decisions, Avoid battle situations, do not seek personal welfares, Keep privacy, fiduciary duty and vital discharge fee in specific committees of the panel are main duties of directors. In addition for directors to act according to the strict conditions of their order, Forcing them to use their care and skills in fulfilling their various tasks, Forcing them to use their discretionary powers in good faith and proper purpose and finally, to force them to act loyally in pursuing their company’s interests are key responsibilities of the panel of directors (Kanchan Damithendra).The Panel is a key component in the Corporate Governance System, which monitors administration in direction of relief and provides management directions to defend and increase stakeholder’s prosperity (Fama & Jensen, 1983). Corporate governance has been a vital subject of theoretical study and discovery of strategy in states around the world (Nazar, 2014). The object of corporate governance is to increase business’s accountability and avoid large scale tragedies before avoiding it. Unsuccessful enormous Enron, and its bankrupt employees and shareholders, is a key argument for the importance of compact corporate governance. The well-executed corporate governance should be comparable to the internal case unit of any police department, in which it should be overcome problems with excessive bias (Sun). (Ghabayen , 2012)  Point out that the theory of Corporate Governance has been given a lot of attention in recent studies throughout the world, especially due to the failure of some major trades such as some corporate scandals and commerce banks (1991) Enron (2001). In addition it tells due to lack of experience in the implementation of corporate governance, Saudi Arabia’s corporate governance has some weaknesses. Good corporate governance practices are considered vital for investors to reduce risk, attract investment capital and increase corporate performance (Heenetigala , 2011).

Various factors
have been considered in earlier research as traits of the Panel of directors.
(Al-Matari, Al-Swidi , Fadzil, & Al-Matari, 2012) Used variables such as COE tenure, panel size, audit team
size, panel composition, and CEO duality were considered as panel
characteristics. Panel
of Directors conferences, average Age, number of females in panel, Inside Directors, CEO
Duality, Panel Composition & Panel size were used as panel characteristics
in (Balasundaram, 2013). So, in this study
considered nine panel characteristics.

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2.2.1.    Panel

The size of the panel of directors is arguable (Ghabayen , 2012). The panel of directors of the company indicate that the size of the panel (Kakanda, Salim, & Chandren , 2016).Additional research on non-financial service fasters shows that the size of the board is an important determinant of firm performance (Pacini, Hillison, & Marlett, 2008). (Ghabayen , 2012)  Says that panel size indicates the number of director’s portion on panel of directors. The (Belkhir , 2009 ) research says that it is more efficient in a smaller panel compared to a large director. Council size is very large in terms of communication, coordination and inability and decision making is delayed. According to (Lipton & Lorsch, 1992) American companies are crowded, which are more expensive for shareholders. Therefore it should be seven or eight panel members. Besides (Upadhyay, 2015) has clearly showed up that large sized boards may be required for effective monitoring of the boards and consultant works. Current evidence is consistent with principles, which are more effective for small boards of directors (Yermack , 1995). Agency theory states that due to the problems of large number of directors’ agencies, awareness is more likely to be done because large number of people will be involved in organized activities in any association (Nazar, 2014).(Ilina, Berezinets, & Cherkasskaya, 2017) Indicated the Panel size is determined by corporate charter. According to it the law on JSC has said that following requirements: More than 1,000 voters should have a business with shareholders, not less than five panel members; One firm with more than 5,000 voters – not even less Seven panel members; Business with more than 10,000 voting shareholders – fewer than nine. In addition it indicate Directors no recommendation regarding the size of Corporate Governance code group. 

2.2.2.    Panel composition

The Panel of
Directors are representing independent and dependent directors on the panel (Ghabayen , 2012). An independent director means a director who is not associated
to or involved with the business in any way and works only to protect the
interests of those members who cannot personally follow their interest. (Kanchan
Damithendra).In India, Section 49
of the listing agreement requires that a listed firm should have at least
one-third of independent directors (Bhatt & Bhattacharya , 2016). (Ilina, Berezinets, & Cherkasskaya, 2017) Said that in order to keep important loads in panel
decision, the panel should include adequate capacity and number of
non-executive directors for their views.