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Impact of Ownership Structure and Board Composition on Corporate Performance in Indian Companies

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  • Apu Manna
  • Tarak Nath Sahu
  • Arindam Gupta

Abstract

This study takes into account the National Stock Exchange (NSE)-listed Indian companies, which constitute the CNX Nifty Index, for the period from 1 April 2009 to 31 March 2013. Tobin’s Q, market value added, cash earnings per share and return on capital employed have been used as the corporate performance variables in the study; the first two being market-based and the last two being accounting-based measures. Board size (BS), board composition, ownership structure, multiplicity of directorship, chief executive officer (CEO) duality, CEO tenure and executive remuneration have been used as corporate governance surrogates from different dimensions along with other widely used independent variables to see their effect on corporate performance in a panel-data-based regression. BS and foreign promoters’ (FPs’) shareholdings have been identified to have a positive impact on more than one corporate performance variable. Among the remaining independent variables, assets turnover is positively related with the performance variables.

Suggested Citation

  • Apu Manna & Tarak Nath Sahu & Arindam Gupta, 2016. "Impact of Ownership Structure and Board Composition on Corporate Performance in Indian Companies," Indian Journal of Corporate Governance, , vol. 9(1), pages 44-66, June.
    • Handle: RePEc:sae:ijcgvn:v:9:y:2016:i:1:p:44-66
    DOI: 10.1177/0974686216635787
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    Cited by:

    1. Apu Manna & Tarak Nath Sahu & Krishna Dayal Pandey, 2020. "Board size, multiple directorship and performance of Indian listed firms," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 19(2), pages 111-129.
    2. Krishna Dayal Pandey & Tarak Nath Sahu, 2019. "Debt Financing, Agency Cost and Firm Performance: Evidence from India," Vision, , vol. 23(3), pages 267-274, September.
    3. Etienne Ndemezo & Charles Kayitana, 2018. "Corporate Governance, Corporate Entrepreneurship and Firm Performance: Evidence from the Rwandese Manufacturing Industry," Indian Journal of Corporate Governance, , vol. 11(2), pages 103-121, December.
    4. Renuka Sharma & Kiran Mehta & Archana Goel, 2023. "Non-linear relationship between board size and performance of Indian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1277-1301, December.
    5. Ritu Pareek & Krishna Dayal Pandey & Tarak Nath Sahu, 2019. "Corporate Governance, Firms’ Characteristics and Environmental Performance Disclosure Practices of Indian Companies," Indian Journal of Corporate Governance, , vol. 12(2), pages 142-155, December.
    6. Sudam Shrikrushna Shingade & Shailesh Rastogi, 2019. "Shareholders’ Activism and Firm Performance: A Review of Literature," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 10(2), pages 22-30, May.

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