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Board Leadership Structure and Firm Performance: Moderating Effects of Board Independence

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  • Akshita Arora

Abstract

Our study examines the impact of dual leadership on the company’s performance. We also investigate the moderating effects of board independence on duality and firm-performance relationship. The article uses a panel data framework, and the estimation has been carried out using system-generalized methods of moments. The results of our study postulate that dual leadership negatively influences firm performance; however, when the moderator, board independence, is introduced in the empirical model, it affects firm performance positively. We submit that the extensive and complete abolition of CEO duality by Indian regulators may require caution for Indian markets. JEL Codes: G34, L25, C33

Suggested Citation

  • Akshita Arora, 2024. "Board Leadership Structure and Firm Performance: Moderating Effects of Board Independence," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 23(1), pages 32-55, March.
    • Handle: RePEc:sae:emffin:v:23:y:2024:i:1:p:32-55
    DOI: 10.1177/09726527231190690
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    References listed on IDEAS

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    Cited by:

    1. Gaurav Mitra & Vandana Gupta & Gaurav Gupta, 2025. "A systematic literature review on the determinants of corporate governance for firm performance: evidence from India," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(4), pages 941-990, December.
    2. Dishant Pandya & Ian A. Van Deventer, 2025. "A comparative review of corporate-governance literature: evidence from NASDAQ and NYSE companies," International Journal of Accounting, Business and Finance, Indian Accounting Association, Patna Branch, vol. 4(2), pages 60-77.

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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