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International Journal of Law and Management: Impact of board size on the accounting returns and the asset quality of Indian banks
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Abstract
Purpose – The purpose of the paper is to explore the impact of board size on the accounting returns and
asset quality of Indian banks.
Design/methodology/approach – This paper uses ordinary least squares regression, robust regression
and panel data methods for estimation, based on data collected for a sample of 29 Indian banks that are listed
on the National Stock Exchange (NSE) and form part of the NSE-500 index over a period of eight financial
years 2009-2016. The data pertaining to the board size of the sample banks is collected from the annual
reports of banks, whereas the data relating to return on assets (ROA) and ratio of the gross non-performing
assets to total assets and control variables (bank age and bank size) is extracted from ACE Equity database.
Findings – This paper concludes that the size of the governing board has a positive impact on the
accounting returns (measured through ROA) of the Indian banks. Further, board size is observed to be
insignificant in determining the asset quality of Indian banks.
Originality/value – This paper contributes to the literature and practitioners in a number of ways. First,
to the best of the authors’ knowledge, this is the first study on the impact of board size on the accounting
returns and asset quality of Indian banks. The findings of the study contribute new theoretical insights to the
body of knowledge on the influence of the size of the board, which may be useful for future researchers.
Second, banks may enhance their financial performance by taking cognizance of the findings of this study.
Finally, equity investors may make use of the findings of this article in deciding on whether to invest in a
bank’s stock/lend to the bank based on board size of the bank.
Ankur Shukla - Personal Name
Sivasankaran Narayanasamy - Personal Name
Ramachandran Krishnakumar - Personal Name
Sivasankaran Narayanasamy - Personal Name
Ramachandran Krishnakumar - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2020
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Ankur Shukla. (2020).International Journal of Law and Management:
Impact of board size on the
accounting returns and the asset
quality of Indian banks.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd