Audit Committees, Board Structures and Firm Performance: A Panel Data Study of BSE 30 Companies

With the implementation of IFRS in Indian companies and cross-border mergers and acquisitions, audit committee forms an important element of corporate governance mechanisms interfacing both with the internal and external stakeholders. Accordingly it has a critical role to play in monitoring and implementing the corporate governance process. This study examines the independence of audit and board committees and their relationship with the firm’s financial performance measures. Panel data regressions involving different variables have been conducted for the years 2008-09, 2009-10 and 2010-11, pertaining to Indian companies listed on BSE Sensex. The findings reveal a positive and significant relationship between the index and firm’s financial measures. The results of pooled regression are in consonance with similar studies in the Indian context.