Board structure and firm performance : evidence from India's top companies

Manuscript Type: Empirical

Research Question/Issue: This paper investigates the relationship between internal governance structures and financial performance of Indian companies. The effectiveness of boards of directors, including board composition, board size, and aspects of board leadership including duality and board busyness are addressed in the Indian context using two theories of corporate governance: agency theory and resource dependency theory.

Research Findings/Insights: The study used a sample of top Indian companies taking into account the endogeneity of the relationships among corporate governance, corporate performance, and corporate capital structure. The study provides some support for aspects of agency theory as a greater proportion of outside directors on boards were associated with improved firm performance. The notion of separating leadership roles in a manner consistent with agency theory was not supported. For instance, the notion that powerful CEOs (duality role, CEO being the promoter, and CEO being the only board manager) have a detrimental effect on performance was not supported. There was some support for resource dependency theory. The findings suggest that larger board size has a positive impact on performance thus supporting the view that greater exposure to the external environment improves access to various resources and thus positively impacts on performance. The study however failed to support the resource dependency theory in terms of the association between frequency of board meetings and performance. Similarly the results showed that outside directors with multiple appointments appeared to have a negative effect on performance, suggesting that "busyness" did not add value in terms of networks and enhancement of resource accessibility.

Theoretical/Academic Implications: The two theories of corporate governance, namely agency and resource dependence theory, were each only partially supported, by the findings of this study. The findings add further to the view that no single theory explains the nexus between corporate governance and performance.

Practitioner/Policy Implications: This study demonstrates that corporate governance measures utilized in developed economies related to boards of directors have some synergies and relevance to emerging economies, such as India. However, the nature of business structures in India, for example the large number of family businesses, may limit the generalizability of the findings and signals the need for further investigation of these businesses. The evidence related to multiple appointments of directors suggests that there may be support for restricting the number of directorships held by any one individual in emerging economies, given that the "busyness" of directors was negatively associated with firm performance.

Composition dependency of the glass forming ability (GFA) in Mg—Ni—Si system by mechanical alloying

The pure elemental powder mixtures with the compositions of Mg₆₅Ni_xSi₃₅−_x (x = 10, 20, 25, 33 at.%) were subject to high-energy ball mill, and the structures of the mixtures at different intervals of milling were characterised by X-ray diffraction (XRD). The compositional dependency of the glass forming ability (GFA) in Mg–Ni–Si system was evaluated based on the experimental results and the theoretical calculation. The compositional dependency of GFA in Mg–Ni–Si system can be understood well by comparing the enthalpies of the crystalline and amorphous phases based on the Miedema's theory for the formation enthalpy of alloys. Increasing the Ni/Mg ratio and/or decreasing Si content can improve the amorphous formability. The calculation results might be of great help in optimising the composition with high GFA in Mg–Ni–Si system.

On anomalous depth-dependency of the hardness of NiTi shape memory alloys in spherical nanoindentation

An experimental study on the indentation hardness of NiTi shape memory alloys (SMAs) by using a spherical indenter tip and a finite element investigation to understand the experimental results are presented in this paper. It is shown that the spherical indentation hardness of NiTi SMAs increases with the indentation depth. The finding is contrary to the recent study on the hardness of NiTi SMAs using a sharp Berkovich indenter tip, where the interfacial energy plays a dominant role at small indentation depths. Our numerical investigation indicates that the influence of the interfacial energy is not significant on the spherical indentation hardness of SMAs. Furthermore, the depth dependency of SMA hardness under a spherical indenter is explained by the elastic spherical contact theory incorporating the deformation effect of phase transformation of SMAs. Hertz theory for purely elastic contact shows that the spherical hardness increases with the square root of the indentation depth. The phase transformation beneath the spherical tip weakens the depth effect of a purely elastic spherical hardness. This study enriches our knowledge on the basic concept of hardness for SMAs under spherical indentation at micro- and nanoscales.

A data dependency based strategy for intermediate data storage in scientific cloud workflow systems

Many scientific workflows are data intensive where large volumes of intermediate data are generated during their execution. Some valuable intermediate data need to be stored for sharing or reuse. Traditionally, they are selectively stored according to the system storage capacity, determined manually. As doing science in the cloud has become popular nowadays, more intermediate data can be stored in scientific cloud workflows based on a pay-for-use model. In this paper, we build an intermediate data dependency graph (IDG) from the data provenance in scientific workflows. With the IDG, deleted intermediate data can be regenerated, and as such we develop a novel intermediate data storage strategy that can reduce the cost of scientific cloud workflow systems by automatically storing appropriate intermediate data sets with one cloud service provider. The strategy has significant research merits, i.e. it achieves a cost-effective trade-off of computation cost and storage cost and is not strongly impacted by the forecasting inaccuracy of data sets' usages. Meanwhile, the strategy also takes the users' tolerance of data accessing delay into consideration. We utilize Amazon's cost model and apply the strategy to general random as well as specific astrophysics pulsar searching scientific workflows for evaluation. The results show that our strategy can reduce the overall cost of scientific cloud workflow execution significantly.