Heterogeneous Governance Effects on Firm Performance: Panel Quantile Evidence on Board Structures, Gender Diversity, and Group Affiliation in Indian Firms

This study examines the association between corporate governance mechanisms and firm performance using a panel of 754 Indian listed non-financial firms over the period 2000–2020. Specifically, we analyze how board size, board independence, CEO duality, board committee intensity, gender diversity, and business group affiliation are associated with firm performance across different points of the performance distribution. The analysis employs multiple estimation approaches, including firm fixed-effects panel regression, instrumental-variable estimation, and panel quantile regression methods following Powell (2020, 2022). The findings reveal substantial heterogeneity in governance–performance relationships across quantiles. Board independence and the number of board committees show positive associations with firm value, particularly among higher-performing firms. Board size exhibits heterogeneous associations across the performance distribution, with positive associations among lower-performing firms but negative associations at higher performance levels. CEO duality is associated with lower firm performance. Gender diversity shows mixed associations across performance levels, with post-reform interactions suggesting that changes following the Companies Act 2013 were largely compliance-driven. Overall, the results highlight the distributional nature of governance–performance relationships and underscore the role of institutional reforms in shaping governance outcomes in emerging markets.