Board Room Diversity and Firm Value: Evidence from India

Posted: 20 Mar 2014 Last revised: 29 Mar 2014

See all articles by Arunima Haldar

Arunima Haldar

S.P. Jain Institute of Management and Research

Reeta Shah

SJMSOM, IIT Bombay

S.V.D. Nageswara Rao

Indian Institute of Technology (IIT), Bombay - Shailesh J. Mehta School of Management (SJM)

Date Written: March 18, 2014

Abstract

This study examines the relationship between board diversity and firm value for 500 large listed Indian firms. This relationship is examined using annual data from 2003-13. Board Diversity is measured by presence of women on the board. Firm Value is measured by using both accounting and market measures of financial performance. After controlling for size, industry, and other corporate governance measures, we find significant positive relationship between board diversity and firm value. We also find that the presence of women on board increases with firm size and board size, but decreases as the number of insiders increases.

Keywords: Corporate Governance, Diversity, Board of Directors, Firm Value, India

JEL Classification: G38, M14, J15, J16

Suggested Citation

Haldar, Arunima and Shah, Reeta and Nageswara Rao, S. V. D., Board Room Diversity and Firm Value: Evidence from India (March 18, 2014). Available at SSRN: https://ssrn.com/abstract=2411382

Arunima Haldar (Contact Author)

S.P. Jain Institute of Management and Research ( email )

Munshi Nagar, Dadabhai Road
Andheri West
Mumbai, Maharashtra 119579
India

Reeta Shah

SJMSOM, IIT Bombay ( email )

Powai
Mumbai, Maharashtra 400076
India

S. V. D. Nageswara Rao

Indian Institute of Technology (IIT), Bombay - Shailesh J. Mehta School of Management (SJM) ( email )

Powai
Mumbai 400076
India
91-22-25767789 (Phone)
91-22-25722872 (Fax)

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