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Corporate Governance and Firm Performance in Indian Textile Companies: Evidence from NSE 500

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  • Ishfaq Gulzar
  • S. M. Imamul Haque
  • Tasneem Khan

Abstract

This article endeavours to study the relationship between corporate governance and performance for a sample of 11 textile firms listed on Nifty 500 Index in India. The article examines whether the board characteristics have any impact on performance measures. The data covers the time period from 2014 to 2018. The study uses board size, board meetings, board independence as corporate governance surrogates from different dimensions along with other widely uses of independent variables to assess their impact in a panel data-based regression. The findings provide mixed results between the board characteristics and the firm performance. Board size and firm performance is statistically significant with return on assets and Tobin’s Q. Whereas, board independence, board meetings and CEO duality are not statistically significant with both accounting-based measure of performance and market-based measure of performance. The article provides empirical evidence that board independence, board meetings and CEO duality is not necessary for listed textile companies in India and would be of interest to regulatory bodies, business practitioners and academic researchers. The main value of this article is the analysis of the effect of corporate governance on performance measures on listed Indian textile industries.

Suggested Citation

  • Ishfaq Gulzar & S. M. Imamul Haque & Tasneem Khan, 2020. "Corporate Governance and Firm Performance in Indian Textile Companies: Evidence from NSE 500," Indian Journal of Corporate Governance, , vol. 13(2), pages 210-226, December.
    • Handle: RePEc:sae:ijcgvn:v:13:y:2020:i:2:p:210-226
    DOI: 10.1177/0974686220966809
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    Cited by:

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    2. Renuka Sharma & Kiran Mehta & Archana Goel, 2023. "Non-linear relationship between board size and performance of Indian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1277-1301, December.
    3. Oluyinka Oluwagbade & Niyi Solomon Awotomýlusý & Samuel Ajibade Dada & Temitayo Oluwatimilehin Abe & Motunrayo Olayinka Adewara, 2024. "A Comparative Analysis of Board Qualities and Performance of Listed Deposit Money Banks in Nigeria and Ghana," International Review of Management and Marketing, Econjournals, vol. 14(6), pages 307-316, October.
    4. Mohit Pathak & Arti Chandani, 2023. "Board composition, executive compensation, and financial performance: panel evidence from India," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 359-373, December.

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