Impact of Board Composition and Board Meeting On Firms' Performance: A Study of Selected Indian Companies

Tarak Nath Sahu; Apu Manna
September 2013
Vilakshan: The XIMB Journal of Management;Sep2013, Vol. 10 Issue 2, p99
Academic Journal
Issues related to corporate governance and the firm performance has long been an area of interest of the researchers in the field of finance. But the study of this relationship is fairly neglected in emerging economies like India. It is often argued that the two important elements of corporate governance viz., corporate board composition and board meeting affect corporate performance. The present study investigates empirically whether the corporate board composition and board meeting affect the performances of selected Indian manufacturing companies. Board Composition is represented by Board Size, Number of Executive Directors, Board Independence and Chairman's Identity. Corporate performance is measured through Net Sales, Net Profit, Return on Capital Employed, Earning per Share, Tobin's Q, Economic Value Added and Market Value Added. The results indicate that board size and board meetings have a positive impact on corporate performance whereas the independence of the board and presence of non-executive chairman in the board has negative impact. No significant relationship has been found between the proportion of executive directors in the board and performance of companies.


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