Board Variables Reforms in India: Success or Failure? A Comparative Analysis Between Pre and Post Enactment Period of Companies Act, 2013

The present research is carried out to make a comparative investigation of the impact of board variables on organizational performance before and after the enactment of the Companies Act, 2013, in the Indian corporate sector. Data of 66 Indian companies listed on the BSE Dollex are analysed in two time periods before (2009–2013) and after (2014–2018) the enactment of the Companies Act, 2013. Regression analysis is used to check the effect of independent directors, female directors, CEO duality and board meetings on company performance, as indicated by ROA, ROE and Tobin’s Q. The findings reveal that independent directors and CEO duality have a considerable negative effect on corporate performance as measured by accounting based performance measures, in the post–enactment period of the Companies Act which was insignificant before the enactment of this Act. The effect of women’s representation and board meetings on organizational performance remains insignificant in both periods of the study. The study suggests that organizations should be attentive towards the board practices adopted by them, in order to present a positive and effective image to stakeholders which results in increasing revenues. Furthermore, policymakers should rethink the corporate board regulations as these variable reforms do not have a substantial effect on corporate performance.