The Influence of Board Independent on Firm Performance of Sri Lankan Listed Companies

The study investigates the effect of board independent on firm performance of Sri Lankan listed companies. This study employs a cross section analysis of 120 firms as sample of listed firms in Colombo Stock Exchange (CSE) for the financial year ending2019 and multivariate analyses are used to test the proposed hypothesis. The board independent variable being the independent variable and firm performance (ROA) variable being the dependent variable are confirmed under regression model. The results of the study display that board independence is negatively connected with ROA. Further, Board size and CEO duality are significantly negatively associated with ROA. Moreover, a control variable of firm size is significantly positively connected with ROA and leverage is negatively related with ROA though not significant. The findings of the study indicate mixed results which are in consistent with empirical evidence of developed nation.