Title: Board size, multiple directorship and performance of Indian listed firms

Authors: Apu Manna; Tarak Nath Sahu; Krishna Dayal Pandey

Addresses: Department of Commerce, Balurghat College, University of Gour Banga, West Bengal, India ' Department of Commerce with Farm Management, Vidyasagar University, Midnapore-721 102, West Bengal, India ' Directorate of Distance Education, Vidyasagar University, Midnapore-721 102, West Bengal, India

Abstract: The present study is an endeavour to empirically investigate the impact of board size and multiplicity of directorship on the performance of Indian firms. The study uses a set of strongly balanced panel data consisting 168 firms of BSE 200 indices of India for the period of 2010–2011 to 2016–2017 and adopts panel data regression analysis to establish the relationship among the variables. The study observes a significantly positive relationship between board size and multiplicity of directorship with the corporate performance of the sample firms. Based on the findings, the study infers that the large boards are more efficient in performing supervisory, controlling and decision making role. Again, a director with multiple directorships is highly able to build his reputational capital through his excellence, knowledge, precious experience and effective decision-making capabilities. The study is highly expected to provide important implications in strategy making in the domain of corporate finance and governance and act as a piece of supplementary information for the academicians, corporate strategists and business analysts.

Keywords: board size; multiplicity of directorship; firm performance; panel data analysis.

DOI: 10.1504/IJEBR.2020.104754

International Journal of Economics and Business Research, 2020 Vol.19 No.2, pp.111 - 129

Received: 09 Oct 2018
Accepted: 28 Mar 2019
Published online: 30 Jan 2020 *

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