Corporate governance, board networks and growth in domestic and international markets: Evidence from India

Deeksha Singh and Andrew Delios

Journal of World Business, 2017, vol. 52, issue 5, 615-627

Abstract: This paper examines the relationship between board structure and risk taking behavior of emerging market firms by looking at firms’ growth strategies in foreign as well as domestic markets. More specifically, we study the individual and joint effects of board structure, network centrality through board interlocks and ownership structure on firm’s growth strategies. With the help of longitudinal data on 2152 publicly listed Indian firms from 2002 to 2009, we find that boards that are structured keeping in view the resource dependence role are more helpful in pursuing growth strategies. We find that firms having more independent board members and CEO duality are more likely to pursue growth through new domestic ventures or new foreign investments. Moreover, firms that are more central in the network of other firms, based on director interlocks, are more likely to pursue growth in domestic as well as international markets. Further we find that board independence interacts with network centrality and family ownership in affecting a firm’s growth strategies.

Keywords: Corporate governance; Growth strategies; Network centrality; Board of directors; Ownership structure; Emerging markets; Board independence (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090951617302432
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:52:y:2017:i:5:p:615-627

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic
http://www.elsevier. ... 620401/bibliographic

DOI: 10.1016/j.jwb.2017.02.002

Access Statistics for this article

Journal of World Business is currently edited by David Collings and Jonathan Doh

More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().