| Summary/Abstract |
The present article makes an attempt to empirically examine the linkage between
board composition and financial performance of the listed Indian and Chinse
firms spanning over the period from 2010 to 2014. Board composition comprises
of the four variables, namely, board size, auditors’ quality, CEO duality
and proportion of independent directors on the board. The study finds that for
Indian firms, the separation between the chief executive officer (CEO) and the
chairperson does have positive impact on the firms’ return on equity (ROE),
while for the Chinese firms, the proportion of independent directors on the
board does significantly influence ROE of the firms. Firms with higher proportion
of independent directors on their boards experience greater ROE. However,
auditors’ quality and board size are not found to have any impact on the ROE of
the firms of either country.
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