Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Board Characteristics and Firm Performance: Evidence from India

Author(s): Sita Ramaiah Tummalapenta, Mahesh Kumar Soma, Radha Mohan Chebolu

Firm performance is a legitimate area of interest for the board of directors of an organisation along with corporate governance. The fiduciary responsibility and firm performance go hand in hand for the Board of Management of a company and in fact it is a critical organisational issue in the present scenario of businesses which are recovering from the impact of the trauma of the global pandemic. There is a need to conduct an in-depth research to ascertain the claims of board characteristics and to construct policies based on the existing literature. It is a fact that the characteristics of board and some important parameters of the board like CEO Duality, Board Size, Board Gender Diversity, and Director Ownership along with number of Board Meetings will influence the fiduciary performance of an organization. This study focuses on the firm performance in terms of profitability or returns of the company based on board characteristics. The data pertaining to 75 companies listed on Bombay Stock Exchange was analysed and conclusions drawn. It was found that the firm performance is positively affected by the board size. Further, CEO duality also has a positive effect on firm performance in addition to board diversity. It was observed that the structure of ownership and the number of board meetings do not have any impact on firm performance.

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