The aim of this report is to provide deep insights regarding the 4^th edition of ASX (Australian Securities Exchange) corporate governance principles & recommendations which has implemented from 1^st January 2020. The 4^th edition includes various changes that will impact the responsibilities and role of the board of directors of the listed corporations. In the year 2017, the council decided to prepare the 4^th edition of principles and recommendations because various issues regarding values, culture, and trust were immerged over the years. These issues have emerged from the conduct of the organizations that are listed in the ASX. The significant changes are being made in principle 3. Now listed organizations have to maintain a culture of acting ethically, lawfully and responsibly.

The findings of the literature have shown that board characteristics such as board independence do not have a significant impact on the performance of the firms. However, board characteristics such as board size and directors' expertise have a positive relationship with the performance of the organization. According to the researchers, future research should be conducted to understand the impact of board characteristics on firm performance. However, the regression analysis shows that there is a significant relationship between the board characteristic and the performance of the firm. As the P-value is less than 0.05 it means that the board characteristic such as board independence hasa significant impact on the performance of the organization. Board independence is positively associated with a firm’s performance. It is recommended to the corporation to comply with the principles and recommendations set by the ASX.

2. Introduction of the 4th edition of ASX (Australian Securities Exchange)

The 4^th edition of ASX (Australian Securities Exchange) corporate governance principles & recommendations has implemented from 1^st January 2020. The 4^th edition includes various changes that will impact the responsibilities and role of the board of directors of the listed corporations. In the year 2017, the council decided to prepare the 4^th edition of principles and recommendations because various issues regarding values, culture, and trust were immerged over the years. These issues have emerged from the conduct of the organizations that are listed in the ASX. The significant changes are being made in principle . Now listed organizations have to maintain a culture of acting ethically, lawfully and responsibly. Supporting to the financial specialists to put resources into the securities exchange there must be finished data to enlist in the market so that there could be helpful for the speculators. As worried for posting in AXS there are a few necessities that are set out before entering in the venture. These prerequisites are intended to ensure the quality and activities of the AXS. To list with the AXS, an organization or individual must satisfy the base affirmation models, for example, structure, free float just as number of investors and so on.

The purpose of this report is to highlight the impacts of the recent changes in principles and recommendations on the board of directors of the corporation. The report has included an extensive literature review regarding how board characteristics affect the performance of the organizations. The data of 15 ASX corporation have been gathered and analyzed to identify the impact of board characteristics on the performance. At the end of the report, the recommendation to the organization has been provided regarding whether the corporation should comply with recent changes or not (Anon., 2019).

3. Board characteristics impact on Performance of the organization
3.1. Literature review of the 4th edition of ASX (Australian Securities Exchange)

The researchers Satirenjit Kaur Johl, Barry J. Cooper, and Shireenjit Kaur (2015) have provided brief information about the effects of board characteristics on the performance of the firms. The researchers have gathered data from 700 listed corporations in order to conduct the study. The data which the researchers gathered include both financial and non-financial data. The board characteristic data includes board size, board independence, and director's expertise. The research is based in the country of Malaysia. The researchers stated in the study that the board characteristics have a significant impact on the performance of the organizations (Johl, et al., 2015).

The findings of the research study have shown that board characteristics such as board independence do not have a significant impact on the performance of the firms. However, the board characteristics such as board size and director's expertise have a positive relationship with the performance of the organization. According to the researchers, future research should be conducted to understand the impact of board characteristics on firm performance. Future studies can provide detailed information regarding how board directors can enhance the performance of the organization or what role they play in the efficiency and profitability of the business. Overall it can be said that there is an impact of board characteristics on the performance of organizations (Johl, et al., 2015).

The researcher HanokuBathula has conducted a research study to investigate the impact of board characteristics on the performance of the corporations. The researchers have gathered data from 156 listed corporations in order to conduct the study. The data which the researchers gathered include both financial and non-financial data. The board characteristic data includes board size, CEO duality, gender diversity, and educational qualification. The research is based in the country of New Zealand. The researchers stated in the study that the board characteristics have a significant impact on the performance of the organizations (Bathula, 2008).

The data of those corporations are taken who are listed in the New Zealand Stock exchange. The data is gathered from the period of 2004 to 2007. The board characteristics such as board size, CEO duality, and gender diversity have a positive relationship with the performance of the organization. According to the researchers, future research should be conducted to understand the impact of board characteristics on firm performance. The findings have also shown that board characteristics such as educational qualifications have a negative association with the performance of the organization. Overall the future research is required for further investigation (Bathula, 2008).

Johnny Jermias and LindawatiGani (2014) have provided deep insights regarding the impact board capital on the relationship among the board characteristics and the performance of the organization. in the research study, the board capital means the ability of the board of directors to monitor the activities and provide a solution to the management. In order to conduct the study, the data of various corporations are gathered. The sample of the corporation is taken from the S&P 500 listed companies in the USA. According to the researchers, the board of directors who are highly qualified managed the activities more efficiently (Jermias & Gani, 2014).

The findings of the research study have shown that board characteristics such as board dependence and CEO duality have a significant negative impact on the performance of the firms. However, the board characteristics such as board capital have a positive relationship with the performance of the organization. The board capita mitigates the negative impact of board characteristics such as board dependence and CEO duality. Future studies can provide detailedinformation regarding how board directors can enhance the performance of the organization or what role they play in the efficiency and profitability of the business. Overall it can be said that there is an impact of board characteristics on the performance of organizations (Jermias & Gani, 2014).

The observations of the data about the shareholders are to control the market corporate in the management and decision making of the board to control the system of the management. Corporate board is divided in the different role in the market. There is variable about the composition of different aspects that are managed to solve the issues of corporate board. There is difference between the relation of firm and performance of the firm. According to Rosenstein and Wyatt the differences in the performance and the relationship could be in various roles of the variables. Aside from these three features a few analysts contend that the monitoring job could profit by solid strategies for surveying the executives of the board, a reduction of the intensity of the CEO to choose new individuals, etc. These are to a large extent subsidiaries of the initial three issues. In our investigation of Dutch sheets of corporate board, our fundamental theory is that corporate performance depends on the nature of checking as proxied by size of the board, the number of outsiders in the board, and compensation of board individuals. In this regard, we concentrate principally on the size of the board (both director and administrative board) and the organization of the administrative board.

The second instrument is control by budgetary organizations, banks and other financial establishments. As in Germany, banks are permitted to hold value and firms have brokers on the administrative board. Moreover, in the different countries annuity assets and insurance agencies are suppliers of money related capital. In the event that a bank is a significant supplier of obligation, it may similarly need to exert control through value stakes or a situation on the corporate board. With regards to checking the board in the Netherlands, supervisory sheets are significant. Besides the factors, board size and organization can't be evaluated from the general setting of corporate administration. Our examination of the effect of board size and on corporate execution thusly assesses both the lawful instruments to shield the executives from investor pressure and the other control instruments, particularly the impact of money related foundations. In the following section we talk about the information we use to estimate the previously mentioned factors.

The study conducted by Vic Naiker, Chris J. Van Staden, and Charl de Villiers (2011) has provided brief information regarding the impact of board characteristics on the environmental performance of corporations. According to the authors, the environmental performance of the organization has become highly essential. The authors stated in the study that the board characteristics such as CEO duality, independence, and director shareholding have a significant relationship with the environmental performance of the organizations. In order to conduct the study a significant amount of data is gathered from different organizations (Villiers, et al., 2011).

The motivation behind this report is to feature the effects of the ongoing changes in standards and proposals on the governing body of the partnership. The report has incorporated a broad writing survey with respect to how board qualities influence the presentation of the associations. The information of 15 ASX organizations have been accumulated and dissected to distinguish the effect of board qualities on the exhibition. Toward the finish of the report, the proposal to the association has been given in regards to whether the company ought to consent to late changes or not.

The findings of the study show that the corporation that has large board sizes, more CEO as directors, and legal experts in the board team manage the environmental performance more effectively. In other words, the above-mentioned board characteristics have a positive relationship with the performance of the organizations. However future research should be conducted to understand the impact of board characteristics on firm performance. The findings have also shown that board characteristics such as CEO have a positive association with the performance of the organization. Overall the future research is required for further investigation (Villiers, et al., 2011).

3.2. Analysis of Data of the 4th edition of ASX (Australian Securities Exchange)

YEAR	ROA
	Code1	Code2	Code3	Code4	Code5	Code6	Code7	Code8	Code9	Code10	Code11	Code12	Code13	Code14	Code15
	WOR	SSM	CTX	EHL	AJL	CII	NHC	PME	SST	HRR	GUD	WOW	CWP	WES	SYR
2010	8.13	-0.68	6.19	-4.62	-1.47	8.17	5.75	17	10.94	-9.11	14.42	11.36	9.36	3.99	-46.98
2011	9.77	4.29	-14.06	4.97	-2.59	3.46	18.63	2.13	14.45	-19.23	9.43	10.73	12.78	4.8	-40.47
2012	8.61	4.48	1.11	6.35	-25.81	7.18	6.42	7.74	12.79	-9.23	19.95	8.51	14.52	5.12	-19.2
2013	6.8	-28.22	9.29	0.51	-33.92	7.82	3.14	19.52	7.68	-18.97	7.4	10.31	13.47	5.29	-16.64
2014	4.92	0.79	0.36	-29.38	-31.12	6.42	2.62	5.15	5.6	-14.03	4.09	10.56	11.34	6.49	-13.1
2015	-1.06	4.48	10.19	-17.53	-18.56	11.53	-1.02	10.91	5.98	-11.7	6.94	8.66	10.74	6.09	0
2016	0.46	7.34	11.72	-39.67	-8.46	15.78	-2.62	18.42	5.2	-7.65	-7.59	-5.06	10.43	1	-5.57
2017	0.72	9.3	10.62	-38.06	-16.63	9.07	6.7	21.52	2.63	-5.49	-1.36	6.61	9.48	7.1	-3.18
2018	1.42	11.92	8.57	1.84	-6.42	9.03	6.61	24.62	4.41	-4.05	21.18	7.42	7.7	3.11	-6.8
2019	1.96	10.33	5.08	4.57	-14.78	3.49	8.2	27.21	3.2	-15.1	11.6	11.45	8.29	19.94	-28.93

The data of 15 ASX listed companies have been gathered to identify whether the board characteristics have an impact on the performance of the firm or not. The performance of the organizations is measured through ROA (return on asset). The data is gathered to know the association between board characteristics and firm performance.

YEAR	Board independence
	Code1	Code2	Code3	Code4	Code5	Code6	Code7	Code8	Code9	Code10	Code11	Code12	Code13	Code14	Code15
	WOR	SSM	CTX	EHL	AJL	CII	NHC	PME	SST	HRR	GUD	WOW	CWP	WES	SYR
2010	0.7	0.7	0.7	0.7	0.7	0.7	0.9	0.7	0.5	0.5	0.5	0.5	0.7	0.7	0.7
2011	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7
2012	0.7	0.6	0.7	0.8	0.8	0.8	0.7	0.7	0.6	0.6	0.6	0.6	0.7	0.7	0.7
2013	0.7	0.5	0.7	0.8	0.8	0.8	0.9	0.7	0.6	0.6	0.6	0.6	0.7	0.7	0.7
2014	0.7	0.7	0.7	0.6	0.7	0.7	0.7	0.7	0.6	0.6	0.6	0.6	0.7	0.7	0.7
2015	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7
2016	0.7	0.7	0.7	0.6	0.6	0.6	0.7	0.7	0.7	0.7	0.8	0.8	0.8	0.8	0.7
2017	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7	0.7
2018	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8
2019	0.8	0.8	0.8	0.8	0.8	0.8	0.9	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8

In the above table, the data regarding the board characteristics are presented. The data is gathered from the period 2010 to 2019. To know the association between board characteristics and firm performance regression analysis has been done (Bryman & Bell, 2015).

3.3. Findings of Data Analysis of the 4th edition of ASX (Australian Securities Exchange)

SUMMARY OUTPUT

*Regression Statistics*
Multiple R	0.703883261
R Square	0.495451645
Adjusted R Square	0.432383101
Standard Error	1.747172852
Observations	10

ANOVA
	df	SS	MS	F	Significance F
Regression	1	23.98061	23.98061	7.855765	0.023097445
Residual	8	24.4209	3.052613
Total	9	48.40151

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-21.36770287	8.23626	-2.59435	0.031897	-40.36055203	-2.3748537	-40.36055203	-2.374853714
X Variable 1	32.34930178	11.54172	2.802814	0.023097	5.73403894	58.964565	5.73403894	58.96456463

The regression analysis shows that there is a significant relationship between the board characteristic and the performance of the firm. As the P-value is less than 0.05 it means that the board characteristic such as board independence hasa significant impact on the performance of the organization. Board independence is positively associated with firm’s performance (JANI, 2014).

4. Conclusion& Recommendation of the 4th edition of ASX (Australian Securities Exchange)

It is concluded that the findings of the literature have shown that board characteristics such as board independence do not have a significant impact on the performance of the firms. However, board characteristics such as board size and director's expertise have a positive relationship with the performance of the organization. According to the researchers, future research should be conducted to understand the impact of board characteristics on firm performance. However, the regression analysis shows that there is a significant relationship between the board characteristic and the performance of the firm. As the P-value is less than 0.05 it means that the board characteristic such as board independence hasa significant impact on the performance of the organization. Board independence is positively associated with a firm’s performance.

It is recommended to the corporation to comply with the principles and recommendations set by the ASX. The 4^th edition includes various changes that will impact the responsibilities and role of the board of directors of the listed corporations. In the year 2017, the council decided to prepare the 4^th edition of principles and recommendations because various issues regarding values, culture, and trust were immerged over the years. The organization can enhance the performance of the firm by accepting the rules and regulations set by ASX.

5. References of the 4th edition of ASX (Australian Securities Exchange)

Anon., 2019. ASX Corporate Governance Council, Corporate Governance Principles and Recommendations, 4th Edition, s.l.: s.n.

Bathula, H., 2008. Board characteristics and firm performance: evidence from New Zealand. pp. 1-132.

Bryman, A. & Bell, E., 2015. Business Research Methods. s.l.:Oxford University Press.

JANI, P., 2014. BUSINESS STATISTICS: Theory and Applications. s.l.:PHI Learning Pvt. Ltd.

Jermias, J. & Gani, L., 2014. The impact of board capital and board characteristics on firm performance. The British Accounting Review, 46(2), pp. 135-153.

Johl, S. K., Kaur, S. & Cooper, B. J., 2015. Board Characteristics and Firm Performance: Evidence from Malaysian Public Listed Firms. Journal of Economics, Business and Management, 3(2), pp. 239-243.

Villiers, C. d., Naiker, V. & Staden, C. J. v., 2011. The Effect of Board Characteristics on Firm Environmental Performance. Journal of Management, 37(6), pp. 1636-1663.