Title: Corporate governance mechanisms and firm performance: a study of select Indian firms

Authors: Pankaj Varshney; Vijay Kumar Kaul; V.K. Vasal

Addresses: Lal Bahadur Shastri Institute of Management, Sector – 11, Dwarka, New Delhi – 110 075, India ' Department of Business Economics, University of Delhi, South Campus, Benito Juarez Road, New Delhi – 110 022, India ' Department of Financial Studies, University of Delhi, South Campus, Benito Juarez Road, New Delhi – 110 022, India

Abstract: A number of studies have analysed the relationship between corporate governance mechanisms and firm performance but those have primarily been in the context of Western countries. In this paper, we examine the relationship between four corporate governance mechanisms such as: a) size of board; b) composition of board; c) board activity; d) CEO duality and firm performance with economic value added (EVA) as the primary performance measurement metric. Using data for NSE listed firms, we conclude, in particular, that the board size has a significantly positive association with firm performance.

Keywords: corporate governance; firm performance; economic value added; EVA; board size; India; board composition; board activity; CEO duality.

DOI: 10.1504/AAJFA.2013.057001

Afro-Asian Journal of Finance and Accounting, 2013 Vol.3 No.4, pp.341 - 395

Received: 17 Jul 2012
Accepted: 19 Mar 2013

Published online: 02 Oct 2013 *

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