BOARD SIZE AND FIRM PERFORMANCE: A STUDY ON BSE 100 COMPANIES

The sizes of the board and its impact on the performance have received much attention in corporate governance. Among the several factors that account for firm's performance, board related issues are one of the most important ones. Human beings work preeminent in groups of a certain size. A board is nothing beyond a group of human beings trying to effort together to generate the best results for the organization. The present research work aims to examine whether board size has any influence on firm's financial performance. The study has been conducted for the year 2018-19 for BSE 100 companies. The study considers Return on Assets (ROA), Profit before Interest and Tax(PBIT), Return on Equity (ROE), Earning per share (EPS), Dividend per share (DPS) and Tobin's Q as measures of financial performance, whereas board size has been taken as an independent variable. The results show that ROA, ROE and Tobin's Q is more for companies with board size between eight and ten. Also, medium size boards are found to perform better than either very small or very big boards. As regard the impact of board size on firm performance, results suggest that for ROE, ROA, PBIT, EPS, DPS and Tobin's Q are statistically not significant. The Board size has no impact on the performance of the firm. It would look that the ideal board size as far as human decision making is somewhere between eight and ten. But it's not that simple.