TY - JOUR
T1 - A contingency model of board characteristics and foreign institutional investor ownership
T2 - the moderating role of firm size and market valuation
AU - Nair, Smitha
AU - Gopikumar, V.
AU - Viswanathan, P. K.
AU - Gopakumar, Sruthy
AU - Gil, Mathew Thomas
N1 - Publisher Copyright:
© 2020, © 2020 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
PY - 2020/1/1
Y1 - 2020/1/1
N2 - We investigate the governance sensitivity of foreign institutional investors’ (FII) ownership in a large emerging market setting of India, characterized by highly concentrated insider ownership. More specifically, we focus on the moderating role of firm size and price to book value (PB) in determining the relationship between FII ownership and board characteristics, such as board size, outside director ratio, CEO duality, and board meeting attendance. Our methodology emphasizes the importance of contextual analysis in studies relating to institutional investors’ preferences. We find that FIIs prefer bigger boards and greater board independence in larger and growth firms (higher PB). Further, FIIs prefer firms that have separate CEO and Chairman of the board positions in growth firms.
AB - We investigate the governance sensitivity of foreign institutional investors’ (FII) ownership in a large emerging market setting of India, characterized by highly concentrated insider ownership. More specifically, we focus on the moderating role of firm size and price to book value (PB) in determining the relationship between FII ownership and board characteristics, such as board size, outside director ratio, CEO duality, and board meeting attendance. Our methodology emphasizes the importance of contextual analysis in studies relating to institutional investors’ preferences. We find that FIIs prefer bigger boards and greater board independence in larger and growth firms (higher PB). Further, FIIs prefer firms that have separate CEO and Chairman of the board positions in growth firms.
UR - http://www.scopus.com/inward/record.url?scp=85082456675&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85082456675&partnerID=8YFLogxK
U2 - 10.1080/23322039.2020.1739465
DO - 10.1080/23322039.2020.1739465
M3 - Article
AN - SCOPUS:85082456675
SN - 2332-2039
VL - 8
JO - Cogent Economics and Finance
JF - Cogent Economics and Finance
IS - 1
M1 - 1739465
ER -