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Board characteristics and CEO turnover–performance relationship: evidence from India

Chhavi Jatana (University Business School, Panjab University, Chandigarh, India)

Corporate Governance

ISSN: 1472-0701

Article publication date: 6 December 2022




This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.


A subset of the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index companies was analyzed over the period 2015–2019 using the logistic (fixed-effects) regression model.


It was found that a weak relationship exists between CEO turnover and firm performance. With respect to board characteristics, board size was found to have a significant role in strengthening the TPR. However, other characteristics, such as board independence, multiple directors, board meetings and board gender diversity, played no role in influencing the TPR.

Research limitations/implications

First, the study period is limited to five years, during which several sample firms did not face any CEO turnover event leading to small sample size. Second, this study considers only the board’s gender diversity, whereas other types of diversity are omitted. Third, this study does not differentiate between insider and professional CEOs.

Practical implications

The findings suggest that regulators should focus on the effective enforcement of laws to strengthen the TPR and improve the monitoring role of boards, particularly in emerging economies like India, which face type II agency problems in addition to traditional principal–agent conflict. The results also offer implications for corporations, investors and academic researchers, highlighting areas that need considerable attention pertaining to corporate governance.


This study discerns the impact of several board-related characteristics on the TPR, particularly after the introduction of the new Companies Act 2013 in the emerging economy of India, where it has not been explored extensively.



The author would like to thank Prof. Gabriel Eweje (Editor-in-Chief), Dr. Yan Wang (Associate Editor) and three anonymous reviewers for their helpful and constructive comments.


Jatana, C. (2022), "Board characteristics and CEO turnover–performance relationship: evidence from India", Corporate Governance, Vol. ahead-of-print No. ahead-of-print.



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