Impact of Board and CEO characteristics on Firms’ Performance

Corporate governance characteristics like board composition and leadership impact a firm’s performance. Researchers have attempted to explain the relationship using different theoretical perspectives like agency theory, resource dependence theory, and stewardship theory. However, the literature presents ambiguous results where some empirical findings support negative impact and other support positive impact. In this paper, it is argued that ambiguity in results could be due to the context specificity of the nature of this relationship. In some contexts, agency theory might be more valid than other theories and in others stewardship theory or resource dependence theory might be more valid. Building on this context specificity, this study looks at the relationship between board and CEO characteristics on firm’s performance in a longitudinal sample of Indian firms. [W.P. No. 2016-03-35]