Board Room Diversity and Firm Value: Evidence from India
Posted: 20 Mar 2014 Last revised: 29 Mar 2014
Date Written: March 18, 2014
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
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