Corporate performance: does board independence matter?-Indian evidence

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI linkABSTRACT • Purpose This paper attempts to examine the efficacy of the presence of independent board directors on firm value in India. • Design/methodology/approach The study utilised panel regression models on large listed Indian companies to investigate the impact on firm value due to the presence of independent directors. • Findings The findings suggest that independent board directors in Indian contexts do not significantly affect firm value. Practical implications The study has implications for the formulation of regulation related to appointment of independent directors and the extent of their representation on the board for them to be effective. • Social implications The proportion of independent directors on the board of the firm is influenced by the trade-off between the cost of having independent directors on the board versus the benefits to the firm and society. • Originality/value Impact of independent director on firm value in highly concentrated ownership remains ambiguous. Classification: Research Paper *Keywords: Corporate Governance, Board Independence, Firm Value, India