Open AccessThe Indian Corporate Board Efficiency and its Impact on Financial Performance
Author(s) -
Mohd Sarim
Publication year - 2021
Publication title -
türk bilgisayar ve matematik eğitimi dergisi
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.218
H-Index - 3
ISSN - 1309-4653
DOI - 10.17762/turcomat.v12i5.2268
Subject(s) - stock exchange , index (typography) , business , accounting , on board , independence (probability theory) , composite index , asset (computer security) , sample (material) , variable (mathematics) , finance , statistics , computer science , mathematics , engineering , computer security , mathematical analysis , chemistry , chromatography , world wide web , aerospace engineering
The objective of the study is to explore the board characteristics and its impact on the nancial performance of Indian companies. The sample comprises of top 100 companies listed on the Bombay Stock Exchange for the financial year 2018-2019. The data required for the analysis was collected from the annual reports of the companies available at their respective websites and from the Prowess database of the Centre for Monitoring of Indian Economy. The paper constructed sub-indices for the board as board composition index, board independence index and board disclosure index. Combining all sub-indices, we formed the Board Composite Index. Further, the data was analysed to draw meaningful conclusions. Firm size is used as a controlling variable. The results show that there is a strong relationship between board indicators and return on asset.