Firm size and the effectiveness of busy boards in an emerging economy

Sugato Chakravarty and Prasad Hegde

Global Finance Journal, 2022, vol. 53, issue C

Abstract: This paper examines the effect of multiple corporate board directorships on performance over a large sample of Indian firms. We show that this relationship is positive and highly significant, but only among small firms. Furthermore, among firms that start off as small at the beginning of our sample period and grow to be large towards the end of the period, the relationship is positive and significant when the firms are small but dissipates when the same firms grow to be large. These findings survive multiple estimation approaches and are robust to alternative measures of board busyness and firm performance.

Keywords: Indian corporate governance; Busy boards; Firm performance; Firm size; Reputational capital; Institutional voids (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:53:y:2022:i:c:s1044028322000205

DOI: 10.1016/j.gfj.2022.100718

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