Title: Impact of board characteristics and capital structure on firm value: evidence from the Indian corporate sector

Authors: Mahesh Chand Garg; Khushboo Tanwer

Addresses: Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001, India ' Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001, India

Abstract: The present research paper empirically evaluates the combined impact of board characteristics and capital structure on company performance of 116 Indian firms listed on BSE Dollex for a period ranging from 2009-2010 to 2018-2019. Both random effects models and fixed effects models are used for analysis. As a proxy of firm value, the study uses both accounting-based (ROA and ROE) and market-based (TQ) performance indicators. The findings show that board meetings are insignificant for organisational performance. Independent directors have an adverse, whereas CEO dualism and female directors have a favourable impact impact on firm performance. Board size and board attendance show positive associations with ROA and ROE, whereas negative associations with Tobin's Q. The debt to equity ratio is negatively related to ROA and ROE, but positively related to Tobin's Q. This research will assist corporations, policymakers, society, and academia in general in making well-informed judgements regarding board characteristics and capital structure.

Keywords: board characteristics; capital structure; firm value; Tobin's Q; India.

DOI: 10.1504/AAJFA.2024.140933

Afro-Asian Journal of Finance and Accounting, 2024 Vol.14 No.5, pp.708 - 734

Received: 27 Feb 2022
Received in revised form: 06 Sep 2022
Accepted: 06 Oct 2022
Published online: 04 Sep 2024 *

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