| Pub. Date | : Jan, 2024 |
|---|---|
| Product Name | : The IUP Journal of Corporate Governance |
| Product Type | : Article |
| Product Code | : IJCG030124 |
| Author Name | : Srikanth Potharla and A K Kranthi |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 16 |
The study examines the often-overlooked aspect of board attendance stability within the context of corporate governance in Indian companies. The study uses data from the Center for Monitoring Indian Economy (CMIE) database covering NSE-500 companies from 2010 to 2022. The Board Attendance Stability Measure (BASM) is presented to evaluate the consistency of board attendance over time. Using an empirical model, the study examines the relationship between board attendance stability and several significant variables such as board independence, meeting frequency, ownership structure, leverage, firm age, and profitability. The findings indicate that board independence and company age positively correlate with BASM, thereby increasing attendance stability. In contrast, an increase in board size, meeting frequency, and promoter ownership has a negative impact on BASM. Intriguingly, leverage does not affect BASM, whereas profitability, measured by return on assets (ROA), positively correlates with attendance stability. The findings provide valuable insights for academics, researchers, investors, lenders, and policymakers by highlighting the role of board attendance stability in determining corporate governance outcomes. The study contributes to the corpus of corporate governance literature, particularly in the context of an emergent market, informing good governance practices and opening the door to future research.
Within the corporate governance framework, the efficiency of a company's board is of paramount importance. The board's effectiveness is critical for well-informed decision making, astute strategic oversight, and strong corporate governance. One aspect fundamental to this governance construct, which is often overlooked in research, is the consistency of board members' meeting attendance. Regular participation in these meetings is indispensable for effective board operations, significantly affecting the quality of discussions and decision-making efficacy. Despite its importance, research on the factors influencing board attendance stability, particularly in emerging economies such as India, is sparse.