Board Variables Reforms in India: Success or Failure? A Comparative Analysis Between Pre and Post Enactment Period of Companies Act, 2013

IF 2.5 Q2 ECONOMICS

Asia-Pacific Financial Markets Pub Date : 2022-10-07 DOI:10.1007/s10690-022-09388-2

Mahesh Chand Garg, Khushboo Tanwer

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引用次数: 1

Abstract

The present research is carried out to make a comparative investigation of the impact of board variables on organizational performance before and after the enactment of the Companies Act, 2013, in the Indian corporate sector. Data of 66 Indian companies listed on the BSE Dollex are analysed in two time periods before (2009–2013) and after (2014–2018) the enactment of the Companies Act, 2013. Regression analysis is used to check the effect of independent directors, female directors, CEO duality and board meetings on company performance, as indicated by ROA, ROE and Tobin’s Q. The findings reveal that independent directors and CEO duality have a considerable negative effect on corporate performance as measured by accounting based performance measures, in the post–enactment period of the Companies Act which was insignificant before the enactment of this Act. The effect of women’s representation and board meetings on organizational performance remains insignificant in both periods of the study. The study suggests that organizations should be attentive towards the board practices adopted by them, in order to present a positive and effective image to stakeholders which results in increasing revenues. Furthermore, policymakers should rethink the corporate board regulations as these variable reforms do not have a substantial effect on corporate performance.

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印度董事会变量改革:成功还是失败?2013年《公司法》颁布前后的比较分析

本研究旨在对2013年《公司法》颁布前后董事会变量对印度公司部门组织绩效的影响进行比较调查。在BSE Dollex上市的66家印度公司的数据在2013年公司法颁布之前(2009-2013年)和之后(2014-2018年)两个时间段进行了分析。通过回归分析检验独立董事、女性董事、CEO二元性和董事会会议对公司绩效的影响，分别用ROA、ROE和Tobin’s q表示。研究结果表明，独立董事和CEO二元性对公司绩效的负面影响在《公司法》颁布后阶段显著，而在《公司法》颁布前不显著。在研究的两个时期，女性代表和董事会会议对组织绩效的影响仍然不显著。该研究表明，组织应该关注他们采用的董事会实践，以便向利益相关者呈现积极有效的形象，从而增加收入。此外，政策制定者应该重新考虑公司董事会的规定，因为这些可变的改革对公司绩效没有实质性的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asia-Pacific Financial Markets ECONOMICS-

CiteScore

3.00

自引率

0.00%

发文量

期刊介绍： The current remarkable growth in the Asia-Pacific financial markets is certain to continue. These markets are expected to play a further important role in the world capital markets for investment and risk management. In accordance with this development, Asia-Pacific Financial Markets (formerly Financial Engineering and the Japanese Markets), the official journal of the Japanese Association of Financial Econometrics and Engineering (JAFEE), is expected to provide an international forum for researchers and practitioners in academia, industry, and government, who engage in empirical and/or theoretical research into the financial markets. We invite submission of quality papers on all aspects of finance and financial engineering. Here we interpret the term ''financial engineering'' broadly enough to cover such topics as financial time series, portfolio analysis, global asset allocation, trading strategy for investment, optimization methods, macro monetary economic analysis and pricing models for various financial assets including derivatives We stress that purely theoretical papers, as well as empirical studies that use Asia-Pacific market data, are welcome. Officially cited as: Asia-Pac Financ Markets