Board characteristics and financial performance: A comprehensive literature review

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Abstract

This paper reviews literature on corporate governance and firm performance published from 1998 to 2019 in a comprehensive manner. The board characteristics such as board size, meetings, composition, and CEO duality are the main discussion points. The findings show that most of the studies have used panel data and statistical tools such as random effects, multiple regression analysis, or instrumental variables approach, etc. The citation analysis revealed that the most cited studies are Eisenberg, Sundgren, and Wells (1998) and Jackling and Johl (2009) in international and Indian contexts respectively. This compilation of past studies will stimulate scholars to identify the research gap in this area and pursue further research.

Keywords: Corporate Governance, Financial Performance, Independent Directors, Board of Directors, Literature Review

Authors’ individual contribution: Conceptualization — A.A.; Methodology — A.A.; Writing — Original Draft — A.S.; Writing — Review & Editing — A.S.; Supervision — A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: A30, G32, G34, L25

Received: 20.07.2021
Accepted: 15.11.2021
Published online: 18.11.2021

How to cite this paper: Arora, A., & Singh, A. (2021). Board characteristics and financial performance: A comprehensive literature review. Corporate Ownership & Control, 19(1), 188–198. https://doi.org/10.22495/cocv19i1art14