Title: Composition of board of directors and performance: evaluating the mediating effect of innovation

Authors: Tarika Singh Sikarwar

Addresses: Prestige Institute of Management, Opposite DD Nagar, Airport Road, Gwalior, 474020, India

Abstract: Board of directors have corporate credit risk on the top of their minds. Risk management is now a governance issue too. The study observes the affiliation amid the composition of the 'board of directors' and the firm's 'financial performance' through the mediating effect of 'innovation activities'. This empirical work is centred on manufacturing corporations recorded in the Stock Exchange of India with the data taken from the NSE website and the company's annual reports from the year 2008 to 2018. The results of the linear regression showed that there is an affiliation that exists between the 'composition of the board of directors' and the 'financial performance' of manufacturing firms. The mediating effect of 'innovation activities' has significantly shown evidence of mediation. The study has implications for the assessment of credit risk of an organisation through the composition of the board of directors as well as innovation practices.

Keywords: board of directors; financial performance; microeconomics; stock exchange; manufacturing firms; innovation index; credit risk.

DOI: 10.1504/IJCA.2021.113891

International Journal of Critical Accounting, 2021 Vol.12 No.1, pp.1 - 16

Received: 30 Jul 2020
Accepted: 21 Oct 2020
Published online: 31 Mar 2021 *