IDEAS home Printed from https://ideas.repec.org/a/ids/ijbire/v28y2022i2p227-245.html
   My bibliography  Save this article

Impact of board characteristics and ownership structure on firm performance: empirical evidence from India

Author

Listed:
  • Aswini Kumar Mishra
  • R.L. Manogna
  • Shikhar Jain

Abstract

This study attempts to assess the empirical relationship between corporate governance and the financial performance of firms in the Indian context by using a set of board and ownership characteristics as representatives of corporate governance practices. We employ a panel dataset comprising of a large sample of 1,347 Indian non-financial companies for the period 2010 to 2018. For studying firm performance, we use both accounting-based performance measures like return on assets (ROA) as well as market-based performance measures like Tobin's Q (TQ). Starting from the basic static panel estimation approach using the fixed-effects estimator, we gradually move on to dynamic panel estimation using different GMM and system GMM estimators to examine the various board characteristics that influence firm performance in India. Based on our final model estimated using system GMM, we infer that on one hand, board size, board activity, and promoter ownership are found to positively influence firm performance while on the other hand, board meetings are found to be negatively related to firm performance. For policymakers and corporates, our study provides valuable insights into the specific aspects of corporate governance that can be targeted and implemented effectively to improve the financial performance of firms.

Suggested Citation

  • Aswini Kumar Mishra & R.L. Manogna & Shikhar Jain, 2022. "Impact of board characteristics and ownership structure on firm performance: empirical evidence from India," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 28(2), pages 227-245.
    • Handle: RePEc:ids:ijbire:v:28:y:2022:i:2:p:227-245
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=123261
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiamin Nie & Shanli Ye, 2022. "Ownership Structure, Corporate Governance, and Performance of Listed Companies—An Empirical Application of a Semi-Parametric Quantile Regression Model," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    2. Leviticus Mensah & Murad Abdurahman Bein, 2023. "Sound Corporate Governance and Financial Performance: Is There a Link? Evidence from Manufacturing Companies in South Africa, Nigeria, and Ghana," Sustainability, MDPI, vol. 15(12), pages 1-24, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbire:v:28:y:2022:i:2:p:227-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=203 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.