Authors

1. Dr. S. Sudalai Muthu
2. R. Hariharan

Affiliation

• Associate Professor Pondicherry University Puducherry
• Research Scholar Pondicherry University Puducherry

Abstract

The size and composition of the board of directors constitute of the most essential corporate governance norms. The performance of the corporate now mostly depends on the board size and composition, it applicable to banking sector also. This paper made an attempt to assess the performance of ICICI Bank and its relationship with its board size and composition. To measure the performance of the bank the variables used like Tobin’s Q ratio, Net Interest Margin (NIM), Return on Asset (ROA) and Return on Average Equity(ROE) and these variables are compared with board size and composition with appropriate tools. The result indicates that performance of the bank is doesn’t depend upon on the board composition in ICICI Bank.

Keywords

Corporate Governance, ICICI Bank, Board Size, , Composition and Performance

References

1. Simpson, W. G. and Gleason, A. E. (1999): Board structure, ownership, and financial distress in banking firms. “International Review of Economics & Finance, 8:281-292”.
2. Stanley C. Vance, Board of Directors: Structure and performance (1964).
3. Sharma J.P (2011), “Corporate Governance, Business Ethics and CSR”,Pg.79,New Delhi, Ane Books Pvt Ltd.
4. Sanjai Bhagat and Bernard Black, “The Non- Correlation Between Board Independence and Long Term Firm Performance”, as published in 27 Journal of Corporation Law 231-274 (2001), Stanford Law School John M.Olin Program Law and Economics, Working Paper No.185.
5. SH.D.Chatterjee, “Board Composition And Performance in Indian Firms: A Comparative Analysis Empirical”, The International Journal of Management Science and Information Technology(IJMSIT), 1(2), 1-15, October-December 2011 ISSN 1923-0265 (print),192-0273 (Online), Copyright ©2011,NAISIT Publishers
6. Saibal Ghosh, “Bank Monitoring, Managerial Owership and Tobin’s Q : An Empirical Analysis for India”, Managerial and Decision Economics 28:129-143 (2007), DOI: 10.1002/mde.1315.
7. Sharma J.P (2011), “Corporate Governance, Business Ethics and CSR”,Pg.79,New Delhi , Ane Books Pvt Ltd.
8. Raheja charu(2005), “Determine of board size and composition: A theory of corporate boards”, Journal of finance and quantitative analysis, Vol.40,pp.283-306.
9. Pearce John A and Zahra shaker A (2000), “Board composition from a strategic contingency perspective”, Journal of Management Studies, vol.29,pp.411-438.
10. Jackling, B. and Johl, S. (2009). “Board Structure and Firm Performance: Evidence from India’s Top Companies”, Corporate Governance
11. Hermalin, B.E., Weisbach, M.S. (2003): Boards of directors as an endogenously determined institution a survey of the economic literature, “Economic Policy Review”, 9 (1):7-26.
12. Donaldson, L. and J.H. Davis (1991). “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns”, Australian Journal of Management 16,49-64.
13. Dalton D R, Daily C M, Johnson J L, and Ellstrand A E (1999), “Number of Directors and Financial Performance: A Meta-Analysis”, Academy of Management Journal, Vol.42, No.6.
14. Andres P.D. and E.Vallelado (2008). “Corporate Governance in Banking: The Role of the Board of Directors”, Journal of Banking & Finance 32, 2570-2580.
15. Anderson,C.R. and M.D.Reeb (2003) “ Founding-family ownership and firm performance: Evidence from the S&P500”, The Journal of Finance, LVIII(3),1301-1328.
16. Agoraki, Maria-Eleni, Delis, Manthos D and Staikouras,Panagiotis (2009), “The effect of board size and composition on bank efficiency”, Online at http://mpra.ub.uni-muenchen.de/18548/MRAP Paper No.18548,posted 11 November 2009/12:15
17. Adams, R., and Mehran, H. August 8, 2005. “Corporate performance, board structure and its determinants in the banking Industry”. EFA 2005 Moscow Meetings. Available at SSRN: http://ssrn.com/abstract=302593.
18. Adams, R., and Mehran, H. April 2003. “Is corporate governance different for bank holding companies?”. Federal Reserve Bank of NY Economic Policy Review, 123-142.
19. Adams, R., and Ferreira, D. 2007. “A theory of friendly boards”. Journal of Finance, 62: 217- 250.