The Impact of Board Composition on Firm Performance with Reference to Selected Indian Companies
Pallavi Kudal1, Sunny Dawar2

1Dr. Pallavi Kudal, Assistant Professor in Christ University, Bangalore, Karnataka, India.
2Dr. Sunny Dawar, Assistant Professor in Faculty of Management & Commerce, Manipal University Jaipur, Rajasthan, India.
Manuscript received on March 12, 2020. | Revised Manuscript received on March 25, 2020. | Manuscript published on March 30, 2020. | PP: 2818-2824 | Volume-8 Issue-6, March 2020. | Retrieval Number: F8324038620/2020©BEIESP | DOI: 10.35940/ijrte.F8324.038620

Open Access | Ethics and Policies | Cite | Mendeley
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (

Abstract: This study examines effects of board composition on firm performance among 24 selected companies which are listed on the National Stock Exchange. It strives to understand the influence of corporate governance by testing 3 variables of board composition namely – board size, number of independent directors and the number of female directors on a company’s profitability measured through the tool – Tobin’s Q. One-way Anova test is used to establish a relationship between each of the three variables of board composition with firm profits. The study is conducted over a period of 5 years from 2013 to 2018 and concentrates on the following sectors – Auto, Financial Services, FMCG, IT, Media, Metal, Pharma, and Realty. The results revealed a significant relationship between board size and number of independent directors with firm profits which meant a firm with a greater sized board or more independent directors also showed higher profits in comparison. While, no significant relationship was found between the number of women directors on a firms’ board and firm performance.
Keywords: Board Composition, National Stock Exchange, Corporate Governance.
Scope of the Article: Measurement & Performance Analysis.