The relationship between corporate governance and the investment decision of small business firms in India

The purpose of this study is to examine the relationships between corporate governance and the investment decision of small business firms in India. This study also seeks to extend the findings of Ruiz-Porras and Lopez-Mateo [1]. Owners/the members of board of directors of small business firms from Punjab area of India were surveyed to discover their perceptions, feelings, and beliefs on the relationship between corporate governance and the investment decision of small business firms to invest in the real estate market. This study utilized survey research (a non-experimental field study design). Overall results show that the CEO tenure, the CEO duality, board size, total assets of the firm, and small business performance positively impact on the investment decision of the small business firms in India. The CEO duality, total assets, and firm performance positively impact on the investment decision of small business firms in the Indian service industry. The board size and the firm performance positively impact on the investment decision of small business firms in the Indian manufacturing industry. This study contributes to the literature on the relationship between corporate governance and the investment decision of small business firms. The study can be useful for real estate investors and investment advisors. -- CEO tenure ; CEO duality ; board size ; firm performance ; investments