Corporate performance: does board independence matter?-Indian evidence

Date

2018-01-12

Advisors

Journal Title

Journal ISSN

ISSN

1934-8835

Volume Title

Publisher

Emerald

Type

Article

Peer reviewed

Yes

Abstract

ABSTRACT • Purpose This paper attempts to examine the efficacy of the presence of independent board directors on firm value in India. • Design/methodology/approach The study utilised panel regression models on large listed Indian companies to investigate the impact on firm value due to the presence of independent directors. • Findings The findings suggest that independent board directors in Indian contexts do not significantly affect firm value. Practical implications The study has implications for the formulation of regulation related to appointment of independent directors and the extent of their representation on the board for them to be effective. • Social implications The proportion of independent directors on the board of the firm is influenced by the trade-off between the cost of having independent directors on the board versus the benefits to the firm and society. • Originality/value Impact of independent director on firm value in highly concentrated ownership remains ambiguous.

Classification: Research Paper *Keywords: Corporate Governance, Board Independence, Firm Value, India.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link

Keywords

Corporate Governance, Board Independence, Firm value, India

Citation

Haldar, A., Shah, R., Rao, N., Stokes, P., Demirbas, D., and Dardour, A. (2018) Corporate performance: does board independence matter?-Indian evidence. International Journal of Organizational Analysis, 26 (1), pp. 185-200

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)