"Corporate Governance and Firm Performance: An investigation of Indian listed firms"

Abstract

Since the time of the Enron accounting fraud, the world of business has paid attention to the concept of corporate governance. Indian business environment have gone through various landmarks in corporate governance history. Some of these are the Kumar Managalam Birla committee, Narayan Murthi committee, the Satyam Scam and the companies' act of 2013. These different landmarks have shaped what are today the corporate governance rules under the companies' act of 2013. The present study tries to investigate the relationship between the firm's corporate governance characteristics and the firm's performance. Spanning over the last 15 years i.e. 2003-2018 the study tries to find the impact of various corporate governance characteristics (Board Size, Independence of board, Institutional Investors and CEO Duality) on the firm's performance (Tobin's Q). The sample of the study is the companies listed on National stock Exchange 500 index during the sample period. The results found significant relationship between firm performance and board size, Institutional investors and CEO duality. There was no significant relationship between firm performance and board independence.