Independent Boards and their impact on the performance of Automobile Industry

Abstract

The present study aims to study the impact of the independent directors on board on the financial performance of the companies listed in the BSE 500 index. The study mainly intends to study the relationship between board independence and firm financial performance in the automobile sector for the time range between 2017-2023. The data set comprises of top 15 company listed in BSE 500, selected on the basis of market capitalization. The research uses the panel data methodology to analyze the result using the STATA software. The findings indicate significant positive relation between the independent directors on the board and the performance of firms.  It highlights importance of independent directors among the board of directors as they bring in enhance fairness and transparency.