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Corporate Governance and Risk Management: An Indian Perspective

Author

Listed:
  • Sharukh Tara

    (Bharti Vidyappeth Institute of Management Studies and Research, Navi, Mumbai, India)

  • Sorab Sadri

    (School of Business and Commerce, Manipal University, Jaipur, India)

Abstract

Companies need funds to finance their activities and as a result, there has been a need for accountability to protect the interests of those providing the funding. Companies are also managed by directors who act as agents of the shareholders. Under pressure to maximize wealth they are prone to excessive risk, reckless conduct or in extreme cases, blatant manipulation of accounting figures. The call for increased accountability grows louder every time there is a crisis in public confidence. Whether this is the stock market crash of 1929, for example, or the more recent high-profile collapses of a number of large firms such as Barings Bank, Enron Corporation and WorldCom, the resulting uncertainty has led to renewed interest in corporate governance practices. It is not only as a means of directing and controlling corporations but as a means of mitigating corporate risk. This paper bases on over a decade’s research attempts to shed some light on this topic based on the Indian experience. Paper tries to bring out the fact that there is a significant relationship between corporate governance and the management of risk and that corporate governance is one of the main means by which a company can manage risk.

Suggested Citation

  • Sharukh Tara & Sorab Sadri, 2015. "Corporate Governance and Risk Management: An Indian Perspective," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(9), pages 33-39, August.
    • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:9:p:33-39
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.19.1003
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    References listed on IDEAS

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    1. Dr Alan Bollard, 2003. "Corporate governance in the financial sector," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 66, June.
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    3. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    4. Thurow, Lester C., 1989. "An Establishment or an Oligarchy?," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(4), pages 405-411, December.
    5. Thurow, Lester C., 1989. "An Establishment or an Oligarchy?," National Tax Journal, National Tax Association, vol. 42(4), pages 405-11, December.
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    Cited by:

    1. Amonboev Makhammadsidik, 2019. "Increasing the Effectiveness of Investment Management by Introducing Corporate Governance in Joint-Stock Companies," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 4(5), pages 7-12, July.
    2. Rasulov Nodir Madrahimovich & Amonboev Mahammadsidik, 2016. "Corporate Governance and Development: The Case of Uzbekistan," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 1(6), pages 31-36, September.
    3. Gavkhar Bekmurodova, 2020. "Theoretical Features of FDI (Foreign Direct Investment) and its Influence to Economic Growth," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 6(2), pages 33-39, January.

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    More about this item

    Keywords

    Corporate Governance; Risk Management; Accountability; Funding; India;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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