Title: Board composition and board size impact on financial performance of the company

Authors: Nikita Agrawal; Vijay Lakshmi

Addresses: Vivekananda Institute of Professional Studies, Guru Gobind Singh Indraprastha University, India ' Department of Commerce, Delhi School of Economics, University of Delhi, India

Abstract: The paper seeks to determine the impact of board composition (proportion of the non-executive directors) and board size on the financial performance of the companies. The study employed panel data of 145 companies for a period of five years and has employed panel regression model to study the relationship between different variables. This study does not find any significant relationship between board size and financial performance of the company. Also, the study concludes a positive relation between non-executive directors and financial performance of the company as these directors bring their expertise, network and resources to the organisation which is crucial for the growth and performance of the enterprise.

Keywords: non-executive directors; board size; financial performance.

DOI: 10.1504/IJPSPM.2020.110142

International Journal of Public Sector Performance Management, 2020 Vol.6 No.5, pp.737 - 747

Received: 22 Apr 2019
Accepted: 15 Aug 2019
Published online: 07 Oct 2020 *

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