Board chair characteristics and firm performance: Evidence from family business groups in India

This study examines the relationship between board chair characteristics and firm performance in Indian family business group firms. Drawing on agency and stewardship theories, it investigates whether family chair leadership enhances or constrains firm performance. Using a panel dataset of 223 listed family business group firms over a five-year period, the analysis employs pooled ordinary least squares and instrumental variable two-stage least squares (IV2SLS) estimations to address potential endogeneity concerns. The results indicate that the presence of family board chairs is positively and significantly associated with firm performance, even after controlling for endogeneity. The estimated effect is economic ally meaningful, suggesting that concentrated family leadership may enhance strategic alignment and monitor efficiency in emerging market contexts. In contrast, CEO duality is negatively related to firm performance, consistent with agency based arguments regarding excessive managerial power. These findings contribute to the corporate governance literature by providing new evidence from Indian family business groups and highlighting the contextual relevance of stewardship mechanisms in emerging economies.