International Journal of Management (IJM)

Source ID:00000011
Volume 11, Issue 5,May 2020, Pages 1179-1194, Page Count - 16

EVALUATION OF FUNCTIONING CHARACTERISTICS AND ETHICAL LEADERSHIP QUALITY OF INDEPENDENCE DIRECTORS - AN INVESTORS' PERSPECTIVES

C. Vethirajan (1) L. Saraswathy (2)

(1) Professor and Head, Dept. of Corporate Secretaryship, Alagappa University, Karaikudi, India.
(2) Ph.D., Research Scholar, Department of Corporate Secretaryship, School of Management, Alagappa University, Karaikudi, India.

Manuscript ID:- 00000-00807
Access Type : Open Access
Read Full Article


Cite this article: C. Vethirajan,L. Saraswathy,  Evaluation Of Functioning Characteristics And Ethical Leadership Quality Of Independence Directors - An Investors' Perspectives, International Journal of Management(IJM), 2020, 11(5), PP.1179-1194

Manuscript Level Metrics (MLM)

Views Downloads Citations Cited References Social Shares
14 8 0 0

Abstract

This aim of the study corporate governance is a structure used to manage and direct the af airs of the corporate company in order to enhance its business prosperity and accountability with objective of achieving long term shareholder value in addition to taking the interests of other stakeholders into account. The purpose of the study to critically examine the mode of appointment of independent directors to boards under the companies Act 2013 and study the board culture. The main objectives of the study evaluate the functioning characteristics of independent directors by the socio- economic characteristics of corporate stakeholders of public limited companies in Mumbai, Andheri region, ethical leadership quality of the independent investor’s perception of the public limited companies. The present study comprises of both primary and secondary data. The Primary data is collected by conducting questionnaire based survey among the population of corporate investors of Public Limited Company in Andheri Region of Mumbai. The snowball sampling technique is used to select the sample respondents from the investor’s population. The size of investors sample is fixed at 400. The statistical tools were used analyses percentage analysis, Correlation and ANNOVA. The concluded of the study the investors, it was understood that the independent directors were better in understanding of their role & responsibilities, worked well with others, possessed required business / industry knowledge, made available themselves when need, attended the board meetings regularly, devoted time to oversee company af airs, always alert and inquisitive, never hesitated to ask hard questions in board meeting, challenged management assumptions and had clear understanding of role & responsibilities of the board.


Author Keywords
Directors Independent Directors Leadership Ethical Leadership & Corporate Stakeholders
Acknowledgement
The Author Dr. C. Vethirajan, Professor and Head, Department of Corporate Secretaryship, School of Management, Alagappa University, Karaikudi, Tamil Nadu, India, and the Coauthor L. Saraswathy, Ph.D Scholar, Department of Corporate Secretaryship, School of Management, Alagappa University, Karaikudi, Tamil Nadu, India has greatly acknowledged under RUSA 2.0 Scheme.
ISSN Print: 0976-6502 ISSN Online: 0976-6510
Source Type: Journals Document Type: Journal Article
Publication Language: English DOI: 10.34218/IJM.11.5.2020.107
Abbreviated Journal Title: IJM Access Type: Open Access
Publisher Name: IAEME Publication Resource Licence: CC BY-NC
Major Subject:Social Sciences and Humanities Subject Area classification: Business, Management and Accounting
Subject area: Management Information Systems Source: SCOPEDATABASE

References (25)
  1. Newman, H A, and Wright, D W
    Compensation Committee Composition and its Influence on CEO Compensation Practices
    (1995)University of Michigan,
  2. Beasley, M.S
    An empirical analysis of the relation between the board of director composition and financial statement fraud
    (1996)The Accounting Review, Volume 71, Page No 443-465,
  3. Sridharan, U V
    CEO Influence and Executive Compensation
    (1996)Financial Review, Volume 31, Page No 51-66,
  4. Wright, D W
    Evidence on the Relation Between Corporate Governance Characteristics and the Quality of Financial Reporting
    (1996)University of Michigan,
  5. Bhagat, S, and Black, B S
    Do Independent Directors Matter?
    (1997)Columbia University,
  6. Kroszner, R S, and Rajan, R G
    Organization Structure and Credibility: Evidence from Commercial Bank Securities Activities Before the Glass-Steagall Act
    (1997)Journal of Monetary Economics, Volume 39, Page No 475-516,
  7. Agrawal, A, and Knoeber, C R
    Outside Directors, Politics, and Firm Performance
    (1998)North Carolina State University,
  8. Beasley, M, and Petroni, K
    Board Independence and Audit Firm Type
    (1998)North Carolina State University,
  9. Bhagat, S, and Black, B S
    The Relationship Between Board Composition and Firm Performance
    (1998)Comparative Corporate Governance: The State of the Art and Emerging Research, Page No 281-306,
  10. Millstein, I M, and MacAvoy, P W
    The Active Board of Directors and Performance of the Large Publicly Traded Corporation
    (1998)Columbia Law Review, Volume 98, Page No 1283-1321,
  11. Calleja, N
    To Delegate or Not to Delegate`: Board Committees and Corporate Performance in Australia`s Top 100 Companies
    (1999)Sydney Law Review, Volume 21, Page No 5-35,
  12. McKinsey & Co
    Investor Protection Survey
    (2000), Page No 16,
  13. Banaji Jairus and Modi Gautam
    Corporate Governance and Indian Private Sector
    (2001)University of Oxford,
  14. Conklin David W. and Lesage Frederic
    Ethics and Competencies
    (2002)Ivey Business Journal,
  15. Kassinis, G. and N. Vafeas
    Corporate Boards and Outside Stakeholders as Determinants of Environmental Litigation
    (2002)Strategic Management Journal, Volume 23, Issue 5, Page No 399-414,
  16. Lorsch, J.W
    Empowering the Board, Harvard Business Review on Corporate Governance
    (2000),
  17. Rowe Glenn W. and Rankin Debra
    Insiders or Outsiders: Who should have more Power on a Board?
    (2002)Ivey Business Journal,
  18. Hsu-Huei Huang, Paochung Hsu, Haider A. Khan and Yun-Lin Yu
    Does the Appointment of the Outside Directors Increase Firm Value? The Evidence from Taiwan
    (2003),
  19. Reiter Barry J. and Rosenberg Nicole
    Meeting the Information Needs of Independent Directors
    (2003)Ivey Business Journal,
  20. Letza, S., Sun, X. and Kirkbride, J
    Shareholding versus stake-holding: a critical review of corporate governance
    (2004)Corporate Governance: International Review, Volume 12, Issue 3, Page No 242-263,
  21. Panasian, C., Prevost, A.K and Bhabra, H.S
    Board Composition and Firm Performance
    (2004),
  22. Pass, C
    Corporate Governance
    (2004), Volume 4, Issue 2, Page No 52- 63,
  23. Webb, E
    An Examination of Socially Responsible Firms` Board Structure
    (2004)Journal of Management and Governance, Volume 8, Issue 3, Page No 255-277,
  24. Perry, T. and Shivdasani, A
    Do Boards Affect Performance? Evidence from Corporate Restructuring
    (2005)The Journal of Business, Volume 78, Issue 4, Page No 54-58,
  25. Shen, W
    Improve Board Effectiveness: The Need for Incentives
    (2005)British Journal of Management, Volume 16, Issue 1, Page No 81-89,