Employee Responsibilities and Rights Journal

, Volume 17, Issue 3, pp 161–172

Corporate Governance and Performance of Indian Firms: The Effect of Board Size and Ownership


DOI: 10.1007/s10672-005-6939-5

Cite this article as:
Dwivedi, N. & Jain, A.K. Employ Respons Rights J (2005) 17: 161. doi:10.1007/s10672-005-6939-5


The paper reviews international literature on corporate governance and firm performance and investigates the relationship in the Indian context, taking into account the endogeneity in the relationship. Governance parameters include board size, directors’ shareholding, institutional and foreign shareholding, while the fragmentation in shareholding is captured by public shareholding. A simultaneous equation regression model for Tobin’s Q, as a measure of firm performance, is attempted using these variables, while controlling for industry effects and other non-governance variables. The data corresponds to a panel of 340 large, listed Indian firms for the period 1997–2001 spread across 24 industry groups.


corporate governance ownership structure board size firm performance 

Copyright information

© Springer Science + Business Media, Inc. 2005

Authors and Affiliations

  1. 1.Department of Strategic ManagementIndian Institute of ManagementKozhikodeIndia
  2. 2.Department of Strategic and International ManagementIndian Institute of ManagementLucknowIndia

Personalised recommendations