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Firm size and the effectiveness of busy boards in an emerging economy

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  • Chakravarty, Sugato
  • Hegde, Prasad

Abstract

This paper examines the effect of multiple corporate board directorships on performance over a large sample of Indian firms. We show that this relationship is positive and highly significant, but only among small firms. Furthermore, among firms that start off as small at the beginning of our sample period and grow to be large towards the end of the period, the relationship is positive and significant when the firms are small but dissipates when the same firms grow to be large. These findings survive multiple estimation approaches and are robust to alternative measures of board busyness and firm performance.

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  • Chakravarty, Sugato & Hegde, Prasad, 2022. "Firm size and the effectiveness of busy boards in an emerging economy," Global Finance Journal, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:glofin:v:53:y:2022:i:c:s1044028322000205
    DOI: 10.1016/j.gfj.2022.100718
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    Cited by:

    1. Andersen, Angela & Garel, Alexandre & Gilbert, Aaron & Tourani-Rad, Alireza, 2022. "Social capital, human capital, and board appointments," Global Finance Journal, Elsevier, vol. 54(C).

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    More about this item

    Keywords

    Indian corporate governance; Busy boards; Firm performance; Firm size; Reputational capital; Institutional voids;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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