Article: The interplay between board characteristics and governance scores: role of family ownership Journal: International Journal of Corporate Governance (IJCG) 2025 Vol.15 No.4 pp.413 - 432 Abstract: This study aims to examine the interplay between family structures and board characteristics concerning their impact on governance scores in the Indian context. The study empirically tests data of firms listed on Nifty-50, and ten-year data from 2012 to 2021 is considered for analysis. Balanced panel data is formed with 500 firm-year observations. It shows the positive association of board size with governance scores. However, CEO-Chairman duality is found to have insignificant impact on the governance scores. The findings indicate that family ownership moderates the influence of board characteristics and governance scores. The negative moderating effect of family ownership on the relationship between independent directors and governance scores stresses on the challenges associated with maintaining independence and objectivity in family-owned firms. These findings have several implications for corporate governance practices and policy formulation and supports that firms should prioritise governance even during periods of financial distress to safeguard shareholder interests and long-term sustainability. Inderscience Publishers - linking academia, business and industry through research

Title: The interplay between board characteristics and governance scores: role of family ownership

Authors: Iragavarapu Sridhar; Kalyani Mulchandani; Sahil Singh Jasrotia; Ketan Mulchandani

Addresses: Indian Institute of Management, Indore, Madhya Pradesh, India ' N.L. Dalmia Institute of Management Studies and Research, Mumbai, Maharashtra, India ' International Management Institute, Kolkata, West Bengal, India ' K.J. Somaiya Institute of Management, Somaiya Vidyavihar University, Mumbai, Maharashtra, India

Abstract: This study aims to examine the interplay between family structures and board characteristics concerning their impact on governance scores in the Indian context. The study empirically tests data of firms listed on Nifty-50, and ten-year data from 2012 to 2021 is considered for analysis. Balanced panel data is formed with 500 firm-year observations. It shows the positive association of board size with governance scores. However, CEO-Chairman duality is found to have insignificant impact on the governance scores. The findings indicate that family ownership moderates the influence of board characteristics and governance scores. The negative moderating effect of family ownership on the relationship between independent directors and governance scores stresses on the challenges associated with maintaining independence and objectivity in family-owned firms. These findings have several implications for corporate governance practices and policy formulation and supports that firms should prioritise governance even during periods of financial distress to safeguard shareholder interests and long-term sustainability.

Keywords: board characteristics; family ownership; governance scores; CEO duality; independent directors; board size.

DOI: 10.1504/IJCG.2025.149632

International Journal of Corporate Governance, 2025 Vol.15 No.4, pp.413 - 432

Received: 12 Jun 2024
Accepted: 29 Jan 2025
Published online: 07 Nov 2025 *

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Title: The interplay between board characteristics and governance scores: role of family ownership

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