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The relation between firm-level corporate governance and market value: A case study of India

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  • Balasubramanian, N.
  • Black, Bernard S.
  • Khanna, Vikramaditya

Abstract

Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak. We also find cross-sectional evidence of a positive relationship between firm market value and an overall governance index, as well as a subindex covering shareholder rights. The association is stronger for more profitable firms and firms with stronger growth opportunities.

Suggested Citation

  • Balasubramanian, N. & Black, Bernard S. & Khanna, Vikramaditya, 2010. "The relation between firm-level corporate governance and market value: A case study of India," Emerging Markets Review, Elsevier, vol. 11(4), pages 319-340, December.
    • Handle: RePEc:eee:ememar:v:11:y:2010:i:4:p:319-340
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