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Asian Journal of Research in Business Economics and Management
Year : 2017, Volume : 7, Issue : 7
First page : ( 100) Last page : ( 119)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2017.00101.3

Impact of ownership structure, board composition and CEO characteristics on corporate performance: An indian study

Manna Apu*, Dr. Sahu Tarak Nath**, Dr. Gupta Arindam***

*Assistant Professor, Balurghat College, Balurghat, India, apumanna57@gmail.com

**Assistant Professor, Vidyasagar University, Midnapore, India, taraknathsahu1@rediffmail.com

***Professor, Vidyasagar University, Midnapore, India, arindam_finance@rediffmail.com

Online published on 17 July, 2017.

Abstract

The purpose of this paper is to examine empirically the relationship between ownership structure, board composition, CEO Characteristics and firm performance in the context of selected Indian companies. The present study has been conducted taking 168 Indian companies listed in the BSE-200 Index of Bombay Stock Exchange (BSE) with their seven consecutive years’ data from 2010 to 2016. To finding out the empirical relationship, panel data regression model is used. Empirical findings assert that promoters’ shareholdings and institutional investors’ shareholdings have the significant and positive relationship with corporate performance. Again the number of directors has a positive significant relation with firm performance. A negative relation is documented in the case of independent and executive directors of the board with firm performance. Further, the multiplicity of directorship shows positive and statistically significant relation with ROCE and CEPS, whereas negative relation with Tobin's Q and MVA which are not significant. With the help of empirical evidence, this study sought that promoters as the most significant stakeholder in Indian corporate sector empirically too who are highly protective of their investment and aim towards an increment in the value of their company. A larger size and less independent corporate board are also recommended to get better performance in the Indian context, though an optimum size cannot be recommended in this study.

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Keywords

Ownership structure, Board size and composition, CEO characteristics, Corporate performance, India.

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