IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id11035.html
   My bibliography  Save this paper

Impact of Board and CEO characteristics on Firms’ Performance

Author

Listed:
  • Chitra Singla

Abstract

Corporate governance characteristics like board composition and leadership impact a firm’s performance. Researchers have attempted to explain the relationship using different theoretical perspectives like agency theory, resource dependence theory, and stewardship theory. However, the literature presents ambiguous results where some empirical findings support negative impact and other support positive impact. In this paper, it is argued that ambiguity in results could be due to the context specificity of the nature of this relationship. In some contexts, agency theory might be more valid than other theories and in others stewardship theory or resource dependence theory might be more valid. Building on this context specificity, this study looks at the relationship between board and CEO characteristics on firm’s performance in a longitudinal sample of Indian firms. [W.P. No. 2016-03-35]

Suggested Citation

  • Chitra Singla, 2016. "Impact of Board and CEO characteristics on Firms’ Performance," Working Papers id:11035, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11035
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=A20167512115_53.pdf&fcategory=Articles&AId=11035&fref=repec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-349, June.
    2. John A. Pearce & Shaker A. Zahra, 1992. "Board Composition From A Strategic Contingency Perspective," Journal of Management Studies, Wiley Blackwell, vol. 29(4), pages 411-438, July.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Melinda Muth & Lex Donaldson, 1998. "Stewardship Theory and Board Structure: a contingency approach," Corporate Governance: An International Review, Wiley Blackwell, vol. 6(1), pages 5-28, January.
    5. Lex Donaldson & James H. Davis, 1991. "Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns," Australian Journal of Management, Australian School of Business, vol. 16(1), pages 49-64, June.
    6. Rajeswararao S. Chaganti & Vijay Mahajan & Subhash Sharma, 1985. "Corporate Board Size, Composition And Corporate Failures In Retailing Industry[1]," Journal of Management Studies, Wiley Blackwell, vol. 22(4), pages 400-417, July.
    7. Jerry Goodstein & Kanak Gautam & Warren Boeker, 1994. "The effects of board size and diversity on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 15(3), pages 241-250, March.
    8. Brian K. Boyd, 1995. "CEO duality and firm performance: A contingency model," Strategic Management Journal, Wiley Blackwell, vol. 16(4), pages 301-312.
    9. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Singla, Chitra, 2016. "Impact of Board and CEO characteristics on Firms’ Performance," IIMA Working Papers WP2016-03-35, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Jens Grigoleit, 2011. "Kapitalmarktreaktionen auf die Ankündigung des Wechsels von Vorstandsvorsitzenden in den Aufsichtsrat bei deutschen Unternehmen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 21(2), pages 131-157, January.
    3. Yu, Mei & Ashton, John K., 2015. "Board leadership structure for Chinese public listed companies," China Economic Review, Elsevier, vol. 34(C), pages 236-248.
    4. Jaskiewicz, Peter & Klein, Sabine, 2007. "The impact of goal alignment on board composition and board size in family businesses," Journal of Business Research, Elsevier, vol. 60(10), pages 1080-1089, October.
    5. Amy J. Hillman & Gavin Nicholson & Christine Shropshire, 2008. "Directors' Multiple Identities, Identification, and Board Monitoring and Resource Provision," Organization Science, INFORMS, vol. 19(3), pages 441-456, June.
    6. Christopher, Joe, 2010. "Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(8), pages 683-695.
    7. Ciampi, Francesco, 2015. "Corporate governance characteristics and default prediction modeling for small enterprises. An empirical analysis of Italian firms," Journal of Business Research, Elsevier, vol. 68(5), pages 1012-1025.
    8. repec:beo:journl:v:62:y:2018:i:216:p:63-84 is not listed on IDEAS
    9. Ana Aleksić Mirić & Miroslav Todorović & Nebojša Janićijević, 2018. "How Can The Efficiency Of Corporate Governance In Serbian State-Owned Enterprises Be Increased?," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 63(216), pages 63-84, January –.
    10. Shu-Ling Lin & Lu Jun & Jing-Lun Yan, 2018. "Family Holding and Board Effectiveness on the Risk-taking of Financial Industry in China and Taiwan," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(2), pages 1-6.
    11. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    12. Martin Kyere & Marcel Ausloos, 2021. "Corporate governance and firms financial performance in the United Kingdom," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1871-1885, April.
    13. Iwasaki, Ichiro & 岩﨑, 一郎 & イワサキ, イチロウ, 2007. "Endogenous board formation and its determinants in a transition economy: evidence from Russia," CEI Working Paper Series 2007-1, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    14. Lippert, Inge, 2008. "Perspektivenverschiebungen in der Corporate Governance: Neuere Ansätze und Studien der Corporate-Governance-Forschung," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-302, WZB Berlin Social Science Center.
    15. Levrau, A. & Van den Berghe, L., 2007. "Identifying key determinants of effective boards of directors," Vlerick Leuven Gent Management School Working Paper Series 2007-11, Vlerick Leuven Gent Management School.
    16. Yuan George Shan, 2019. "Managerial ownership, board independence and firm performance," Accounting Research Journal, Emerald Group Publishing Limited, vol. 32(2), pages 203-220, July.
    17. Mediha Mezhoud & Asma Sghaier & Adel Boubaker, 2017. "The Impact of Internal Governance Mechanisms on the Share Price Volatility of Listed Companies in Paris Stock Exchange," Bulletin of Applied Economics, Risk Market Journals, vol. 4(1), pages 1-12.
    18. Singh, Manohar & Davidson III, Wallace N., 2003. "Agency costs, ownership structure and corporate governance mechanisms," Journal of Banking & Finance, Elsevier, vol. 27(5), pages 793-816, May.
    19. Peng, Yu-Shu & Fang, Chung-Ping, 2010. "Acquisition experience, board characteristics, and acquisition behavior," Journal of Business Research, Elsevier, vol. 63(5), pages 502-509, May.
    20. Naeem Tabassum & Satwinder Singh, 2020. "Corporate Governance and Organisational Performance," Springer Books, Springer, number 978-3-030-48527-6, September.
    21. Maria L. Goranova & Richard L. Priem & Hermann A. Ndofor & Cheryl A. Trahms, 2017. "Is there a “Dark Side” to Monitoring? Board and Shareholder Monitoring Effects on M&A Performance Extremeness," Strategic Management Journal, Wiley Blackwell, vol. 38(11), pages 2285-2297, November.

    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:ess:wpaper:id:11035. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    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.