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Can corporate governance structure effect on corporate performance: an empirical investigation from Indian companies

Author

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  • Narsa Goud Neralla

    (Department of Finance & Accounting, ICFAI Business School (IBS), (A Constituent of IFHE, deemed to be a university))

Abstract

This research foremost intention is to investigate the corporate governance structure effect on the firm’s performance of the Indian-listed companies. The study was based on a six-year financial figure from FY 2014–2015 to FY 2019–2020 of Indian-listed companies on the Bombay Stock Exchange (BSE). The study applied the panel data statics model such as pooled OLS, fixed effect and random effect model, Hausman test and the Sys-GMM models for testing the study hypotheses. The study findings indicate that higher board size has a positive significant impact with the ROA, Tobin’s Q on the firm’s performance, and this helps in strengthen the decision-making process. Besides, the study results show statistically insignificant correlation among the ROA, EPS and NPM with the board independence. The results also reflected the positively correlation among the board meetings and the performance indicators of Tobin’s Q, and these scenarios lead to that enhancement of corporate governance practices. Besides, the results negatively revealed correlation amongst the ROE, NPM and corporate governance indicators of CEO duality. The results of the study suggested that companies likely implement proper corporate governance practices leading to sophisticated effectiveness in firm’s performance and minimize agency cost. The study attempted corporate governance issues with the several different measures and firm’s variables other than using a single-measure context. Additionally, various model descriptions and statistical techniques are applied for analyzing the corporate governance structure and firm-related performance.

Suggested Citation

  • Narsa Goud Neralla, 2022. "Can corporate governance structure effect on corporate performance: an empirical investigation from Indian companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(3), pages 282-300, September.
    • Handle: RePEc:pal:ijodag:v:19:y:2022:i:3:d:10.1057_s41310-021-00135-z
    DOI: 10.1057/s41310-021-00135-z
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    2. Adrian Doru Bigioi & Cristina Elena Bigioi, 2023. "Governance and Performance in Romanian Energy Companies," Energies, MDPI, vol. 16(13), pages 1-22, June.

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    More about this item

    Keywords

    Corporate governance; Financial performance; Emerging market; Panel data; Sys-GMM; Indian firms;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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