IMPACT OF BOARD GOVERNANCE ON FINANCIAL PERFORMANCE OF FMCG COMPANIES LISTED ON BSE: EVIDENCE FROM A SYSTEM DYNAMIC PANEL-DATA ESTIMATION MODEL
Dr. G. Surendra, Assistant Professor, PG & Research Department of Commerce, Rayalaseema University, Kurnool.
DOI: https://doi.org/10.63712/bpsrj-v2i1p004
ABSTRACT:
Corporate governance has gained significant importance due to its role in enhancing transparency, accountability, and organizational performance. This study investigates the effect of board governance mechanisms on the financial performance of Fast Moving Consumer Goods (FMCG) companies listed on the Bombay Stock Exchange (BSE).
Using a system dynamic panel-data estimation model, the study examines a balanced panel of 30 FMCG firms over a five-year period. Return on Assets (ROA) is employed as a proxy for financial performance, while board size, board independence, number of board meetings, chairman duality, number of women directors, and number of board committees are considered as board governance variables.