ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Corporate Board and Performance

R A Sharma This article is intended to ascertain the relationship between directorial turnover and performance of a company. It is hpyothesised that a company with too high or too low a turnover in the board of directors is not likely to be as high a performer as a company with a board having moderate ranges of turnover. It is felt that the lower stability does not permit continuity of policies which, in turn, affects organisational functioning. At the same time, it is also felt that too sticky boards are likely to become state developing patterned ways of decision-making to arrive at habitual consensus wherein difference of opinion is not a virtue and the board remains insulated from new knowledge and ideas. Our effort in this article will be to measure the changes in the boards of directors of non-government public limited companies engaged in manufacturing and belonging to different categories of entrepreneurs and link the performance of their companies with these changes. The results of this study will reflect upon behaviours; of various categories of entrepreneurs and provide lessons to potential entrepreneurs.

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