The Impact of Board Size Moderation on Firm Performance and Working Capital Requirements in the Indian Hospitality Sector

The study investigates the impact of firm performance on working capital requirements in the regulation of board size as a moderator. We use the underpinnings of Agency and Resource dependence theories while substantiating their association. The study uses a moderation method, using panel data models to map temporal influences on the association. Analyzing 473 firm-year observations, spanning 2013-2022 from the hospitality industry in India, the manuscript substantiates that board size and firm size are critical to shaping the working capital requirements of the hospitality industry. Moreover, the investigation reveals that board size plays a pivotal role in moderating the primary association between firm performance and working capital requirements. The investigation also reveals some significant inferences about covariates like asset tangibility, debt ratio, asset tangibility and internal liquidity. This research makes a substantial contribution to the specific literature on the hospitality industry, which is characterized by seasonal fluctuations and high fixed costs. Additionally, it enhances our comprehension of the entrepreneurial standing of hospitality firms within the context of India. Also, the current study has several implications for practitioners and theorists.