Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 53

Impact of Corporate Governance Practices on Firm Profitability: A study of Selected

Industries in India
Puneeta Goel
Amity College of Commerce and Finance,
Amity University, Noida, India
puneetagoel@gmail.com

R S Ramesh
Post Graduate Department of Management Studies,
JSSATE, Bangalore., India
raekawadin@yahoo.com

Abstract
Good corporate governance standards are essential for the integrity of corporations, financial
institutions and markets and have a bearing on the growth and stability of the economy. The new
Companies Act is a major milestone in the corporate governance sphere in India and is likely to
have significant impact on the governance of companies in the country. In the opinion of the
Securities and Exchange Board of India (SEBI), the imperative for corporate governance lies not
merely in having a code of corporate governance, but in practicing it. This study explored the
extent of corporate governance practices being followed and reported by Indian companies in
different industries and analyzed its impact on financial performance. There is a significant
correlation between total corporate governance score and Tobin Q ratio of market valuation,
however, individual parameters of corporate governance doesnt have any significant relationship
and impact on market valuation and profitability of the companies. There in a call for evolving

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 54

corporate accountability movement in India through well framed mandatory corporate reporting
guidelines covering all aspects of social, environment and economic performance.

Key Words: Corporate Governance, Independent Directors, Code of Ethics, Whistle blower,
Financial Performance.

Introduction
Creating strong corporate governance framework encourages flexibility, innovation and risk
management. It helps to ensure that companies take care of the interest of wide range of
stakeholders for whom it operates and makes the boards more accountable (Chatterjee D, 2011).
Over the past decade, India has made significant strides in the areas of corporate governance
reforms, which have improved public trust in the market. These reforms have been well received
by the investors, including the foreign institutional investors (FIIs).
The enactment of the company bill 2012 is major development in the directions of corporate
governance. The new bill replaces the Companies Act, 1956 and aims to improve corporate
governance standards, simplify regulations and enhance the interests of minority shareholders
(Prasanna, 2013). This paper aims at analyzing the corporate governance performance of Indian
companies after the introduction of the reforms in India.

Good Governance in capital market has always been high on the agenda of Security Exchange
Board of India (SEBI). Corporate Governance is looked upon as a distinctive brand and benchmark
in the profile of Corporate Excellence. This is evident from the continuous updating of guidelines,
rules and regulations by SEBI for ensuring transparency and accountability (Sehgal and Mulraj,
2007).

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 55

Corporate governance reforms assume critical significance for developing economies like India,
which is moving towards a more transparent and accountable system of economic governance
(Sanan and Yadav, 2011). Enacting corporate reforms, however, is significantly difficult than
framing those reforms. Thus, if the governance reforms have to occur, they have to take place in
the larger context of political and legal reforms that can enable society to exercise control over
companies (Ananya M R, 2002). In the opinion of the SEBI, the imperative for corporate
governance lies not merely in having a code of corporate governance, but in practicing it. What
counts is the way in which these are put to use.
Prior studies have investigated the relationship between mechanism of corporate governance and
financial performance of the companies. Taking different mechanisms for corporate governance
like size of board, number of independent directors, ownership pattern etc, there have been a
contradicting findings about the relationship between corporate governance disclosures and
financial performance. Therefore, this study identifies different mechanisms of corporate
governance based on past literature review and then explores the relationship between different
mechanisms of corporate governance disclosures and financial performance of the companies in
Indian context.

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 56

Figure 1: Theoretical Framework

Meetings of
Board
Independent
Directors

Tobin
Q

Risk
Management
Ethics
Committee

Corporate
Governance

ROS

Financial
Performance

Code of Ethics
Communication
of COE

ROCE

Legal cases
Whistle blower

Review of Literature
Corporate Governance disclosures signify the extent of ethical practice followed by the companies.
A lot of research has been done in this field adopting varying methodologies and presenting the
extent of disclosure done by companies and its impact on financial performance of the companies.
According to Sanan & Yadav (2011) India has adopted a series of reforms in corporate governance.
But this has brought only a moderate change in disclosure by the Indian companies. Chatterjee D
(2011) found that the top Indian Companies are providing bare minimum information required as
per regulations and even some of them are not disclosing the mandatory requirement. Sharma and
Singh (2009) reported that voluntary disclosures have improved with the introduction a reforms

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 57

but the extent of disclosure vary among the different companies selected for the study. Kaur and
Misra (2010) found that independent directors and concentrated ownership didnt affect the
ranking of the companies but good relations with external auditors and inspectors are a motivating
factor for effective governance and monitoring.
Bhasin (2012) found that there is no significant difference in the extent and quality of disclosures
made by Indian companies in selected industries. Bhardwaj and Rao (2014) also revealed a mix of
response towards corporate governance disclosure by Indian Companies. On an average 80% of
the companies follow the provisions regulatory.
Abatecola et al (2012) found that association between specific corporate governance variables and
corporate performance variables may be conflicting but overall corporate governance has a
significant statistical relationship with corporate performance variables like ROC, ROA etc. Sarpal
& Singh (2013) have also tried to establish a relationship between board and corporate
performance and found that there is no significant relationship between the two. Gomper et al
(2003) established a positive relationship between share holders rights and value of the companies.
On the other hand, Bauer et al (2004) found a negative relationship between companies having
high corporate governance ratings and performance based on earning and returns. Bhagat & Bolton
(2008) also found that corporate governance measures are not correlated to future stock market
performance.
Klapper & love (2002) found that the markets where legal system are weak, the firms are placed
at low ranking but good governance has positive correlation with performance and valuation even
in weak emerging economies. Maher and Anderson (1999) found that corporate governance
depend on the legal and regulatory framework in different countries. Kumar J. (2004) studied the

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 58

relationship between CG and firm performance in India contest. It was found that there was no
significant relation between foreign shareholding and performance of the companies. Patibandla
(2006) had a contrasting view on foreign shareholdings in Indian companies. He found that as the
investment by foreign investor increases in Indian companies, the profitability increases and thus
has a positive correlation with corporate governance. On the other hand the investment by
government institution investors decreases the performance of the companies.
Prasana (2013) found that reforms in corporate governance and implementation of clause 49 by
SEBI have made a significant impact on volatility of stock market in India. Bae and Goyal (2010)
found that good corporate governance practice adopted by Korean firm have resulted in improved
equity markets and increased foreign ownership. Li & Yang (2012) stated that improved corporate
governance can help in reducing cost of equity. As corporate governance disclosure increases, the
cost of capital decreases. Botosan (2006) found in an extensive literature review that proper
disclosure of financial reporting and corporate governance practices help in reducing the cost of
equity capital. Misra and Vishnani (2012) are of the view that reforms and changes in corporate
governance have no significant impact on the market risk of the companies listed in Group A of
BSE. Kohli and Saha (2008) found that improvement in corporate governance practices leads to
increase in market valuations. Raithatha and Bapat (2012) reported that corporate governance
score had no significant influence on the different variable of financial performance. Annalisa and
Yosef (2011) did not find any significant relation between independent directors and earning of
the family controlled businesses. Halder et al (2013) reported that the pressure of majority
independent directors on board have a positive impact on the return on equity. But board size has
a negative correlation with ROE and EVA. Bijalwan and Madan (2013) found that following good
corporate governance practice and having transparency in disclosure has a positive impact on

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 59

financial performance of the company. Hermes and Katsigianni (2011) also observed that good
governance practice leads to improved financial performance of the companies. Subramanian and
Reddy (2012) found that the disclosure related to the board practice result in improving market
share and growth rate but the ownership related disclosures are negatively associated with market
share.
Objective of the Study
1. To study the extent of corporate governance practices being followed and reported by the
selected companies on the defined parameters.
2. To analyze the relationship between parameters of corporate governance on financial
performance.
3. To study the impact of corporate governance on financial performance.

Hypothesis
H0: There is no significant relationship between different parameters of corporate governance
and financial performance.
H1: There is a significant relationship between different parameters of corporate governance
and financial performance.
H0: There is no significant impact of different parameters of corporate governance on financial
performance.
H2: There is a significant impact of different parameters of corporate governance on financial
performance.

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 60

Sample Size
A sample of 120 companies has been taken from the list of ET 500, 2012. This study is covering
manufacturing and IT industries in India. The top 15 companies based on revenue from different
sectors of Iron and steel, IT and computers, Engineering and electrical, Auto and ancillaries,
Pharmaceuticals, Chemicals and fertilizers, Oil refineries and power and Diversified and consumer
appliances were taken for the study.
Data Collection
Data regarding corporate governance has been collected using the annual reports, sustainability
reports and business responsibility reports available at the websites of the companies. Financial
data has been collected from moneycontrol.com and prowess database for an average of three years
(2010-11 to 2012-13).
Data Analysis
To address hypothesis, an analysis of corporate governance score of each company in every
industry has been done based on eight parameters of corporate governance. The corporate
governance score was calculated for the selected companies on the basis of following parameters:
1. Number of Meetings of Board of Directors
2. Number of Independent Directors on Board
3. Risk Management
4. Compliance and Ethics Committee
5. Well defined Code of Ethics
6. Communication and Distribution of code of ethics
7. Legal cases pending against company

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 61

8. Whistle blower policy

Item wise score of each industry is calculated for each parameter using the following formula:
Total Score of an Item of all Companies in an Industry
Industry Score for Each Item of Disclosure = ----------------------------------------------------- X 100
Maximum Score of Each Item X Number of Companies
Descriptive statistics like mean and standard deviation have been used for analysis. Correlation
analysis has been done to study the relationship between different parameters of corporate
governance and financial performance. Market valuation ratio of Tobin Q and profitability ratios
of ROS and ROCE have been taken as measures of financial performance. Regression analysis has
been applied to study the impact of corporate governance on financial performance.
Result and Analysis

Table 1: Descriptive Statistics

Std.
Minimum Maximum Mean Deviation
BOD Meetings

2.00

3.00 2.3167

.46713

Ind Directors

1.00

3.00 2.4583

.68472

Risk Management

.00

1.00 .6917

.46374

Ethics Committee

.00

1.00 .2000

.40168

Code of ethics

.00

2.00 1.2000

.46018

1.00

3.00 2.1083

.48152

.00

1.00 .2500

.43483

1.00

3.00 2.0167

.92567

Communicating Ethics
Legal Case
Whistle Blower

Source: Calculated by Author using SPSS 16

Table 1 shows the descriptive statistics of different parameters of corporate governance which
reveal that, independent directors on board and conducting more than requisite number of board

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 62

meetings has been rigorously followed by most of the selected Indian companies. It is very
encouraging to see that following the recent norms many companies have set up whistle blower
policy and communicating the ethical codes to their employees. However, Indian companies show
very poor performance on account of having separate ethics committee and on disclosing legal
cases pending against them. Risk management has not been a separate area of concern among the
functions of board of directors. Higher standard deviation on whistle blower policy signifies
difference in companies in following the norm of corporate governance.
Table 2: Spearman Correlations
Tobin Q
ROS
Total Corporate Governance
Score
CG1
CG2
CG3
CG4
CG5
CG6
CG7
CG8

Number of Board meeting

Number of Independent Directors
Risk Management
Ethics Committee
Code of Ethics
Communication of Code of Ethics
Legal cases Pending
Whistle Blower Policy

ROCE

0.205

0.133

0.085

0.025

0.146

0.354

-0.135

-0.078

-0.099

0.143

0.398

0.282

0.072

0.092

0.027

0.434

0.318

0.766

0.212

-0.013

0.137

0.021

0.885

0.136

0.049

0.128

0.000

0.594

0.163

0.997

0.172

0.070

-0.034

0.062

0.449

0.715

0.208

0.012

-0.013

0.023

0.896

0.885

0.148

0.233

0.127

0.108

0.011

0.167

0.125

0.080

0.052

0.175

0.385

0.574

Table 2 describes the relationship between different parameters of corporate governance and
profitability. It has been observed that there is no significant relation between the individual
parameters of corporate governance and variables of financial performance. However, the total
score of corporate governance has a significant correlation with only the market valuation measure

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 63

of Tobin Q where the p-value 0.025 is less than significant level of 0.05. In all other cases the
significant value is more than 0.05 and thus we can accept the null hypothesis 2 that there is no
significant correlation between different parameters of corporate governance and financial
performance of the companies.
Table 3: Regression Model Summary
R
R
F
Sig.
Square
Tobin
Q

ROS
ROCE

0.345264

0.119207

1.860935

0.073404

0.250734

0.062868

0.930805

0.494193

0.266928

0.071251

1.064446

0.393232

Table 4: Regression Coefficients

(Constant)
Standardized
Coefficients

Tobin
Q

ROS

ROCE

CG1

CG2

CG3

CG4

CG5

-0.232

-0.046

0.165

-0.048

0.036

CG6

CG7

CG8

0.101

0.204

-0.078

1.781

-2.419

-0.502

1.709

-0.465

0.225

0.645

2.099

-0.738

Sig.

0.078

0.017

0.617

0.090

0.643

0.822

0.520

0.038

0.462

-0.082

0.102

0.113

0.123

0.029

-0.138

0.146

-0.109

Standardized
Coefficients
T

1.737

-0.836

1.082

1.143

1.150

0.177

-0.862

1.462

-1.004

Sig.

0.085

0.405

0.282

0.256

0.252

0.860

0.391

0.147

0.318

-0.122

0.056

0.184

-0.074

-0.010

0.034

0.174

0.015

Standardized
Coefficients
T

1.666

-1.243

0.594

1.867

-0.693

-0.062

0.214

1.752

0.138

Sig.

0.099

0.217

0.554

0.064

0.490

0.951

0.831

0.082

0.890

Table 3 and 4 show the results of regression analysis for the impact of independent variables of
corporate governance on the dependent variables of financial performance. The analysis clearly
illustrate that there is no significant impact of parameters of corporate governance on market
valuation ratio of Tobin Q and even on profitability ratios of ROS and ROCE as the significant
pvalue in all cases is more than 0.05. Thus the null hypothesis 3 is accepted that there is no
significant impact of corporate governance practices on financial performance of the companies.

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 64

Discussion
The result of the extent of disclosures reveal that refineries and power sector along with I T and
pharmaceutical sector have done maximum disclosure on corporate governance. The result are
consistent with Sharma and Singh (2009) and Bhasin M. (2012) as they have also concluded that
I T Sector has maximum disclosure of corporate governance in India and the degree of disclosure
differs from company to company in different sectors (Chatterjee D, 2011). Since the mean score
of all the industries is nearly 50% - 60% only, the results are consistent with Reddy D M (2013),
Sanan and Yadav (2011) where in they have also found that disclosure have improved after
implementation of corporate governance reforms and clause 49 but most of the Indian companies
are not able to maintain average performance level in disclosure of corporate governance practice.
The presence of risk management, whistle blower policy and ethics committee as special functions
of boards, Indian Companies still have a long way to go to achieve excellence in corporate
governance (Shukla, 2009). Although the code of ethics is defined by every company in its own
way but a comprehensive code of ethics should be made mandatory for better transparency and
sustainable business (NRHC, 2012). Moreover, it has been observed that most of the companies
are disclosing the positive aspect of performance as the number of law cases pending against the
companies have been reported by only approx. 25% of the companies under study.
In consistent with the results of study by Klapper and Love, 2002, Mohanty P., 2003; Bauer et at,
2004, Kumar Jayesh, 2004, there was a positive correlation between corporate governance and
market valuation measurement through Tobin Q ratio. However, only a moderate or low impact of
corporate governance was observed on profitability measures of corporate performance. This study
confirms that good corporate governance offers better market valuations and returns as compared
to the companies with bad corporate governance (Cheung et al, 2010).

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 65

The results are consistent with Sarpal and Singh, 2013, Tata and Sharma, 2012, Annalisa and Yosef
(2011), where the individual parameters of corporate governance have no significant relation with
financial performance. The results of the study show very weak impact of corporate governance
on market valuation. Misra & Vishnavi (2012) also confirm that regulations on corporate
governance have not been able to provide any significant benefit to the investors by way of
reducing market risk or increasing returns. However, the results of this study are inconsistent with
Bae and Goyal (2010), Li and Yang (2012) Botoson (2006) where they have reported that good
corporate governance improves equity market and reduces cost of capital.
The present study is a further enhancement of the study done by Abatecola et al, 2012 where they
have studied the impact of individual attributes of corporate governance on market and profitability
variables. As called by them, this study tries to study the overall impact of corporate governance
and results indicate that although there is a positive and moderate correlation between corporate
governance and market valuation indicator Tobin Q ratio but it was observed that there was no
significant correlation between corporate governance and profitability variables of ROS and
ROCE.
Findings and Conclusion
Most of the companies are conducting more than four meetings of the board of directors every
year and are having requisite number of independent directors on the board. The study found that
risk management is not an integral part of the functions of the board of directors. Very few
companies have a separate ethics committee for taking care of the ethical implication of its
operations. Most of the companies have developed a code of ethics as it is mandatory by SEBI but
only some companies have developed a detailed code of ethics for all levels of management and

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 66

operations. Code of ethics is being communicated to the employees through their website by most
of the companies. It was found that most of the companies have not reported the law suit pending
against them. This implies that companies are trying to report only the positive aspects of their
operations but are concealing the negative aspects from the investors and general public. Although
it has been made mandatory by SEBI to have a whistle blower policy, it was found that only 60%70% of the companies have made a separate whistle blower policy for their organization. Over all
corporate governance score of different industries lies between 60% to70% which implies that
there is lot of scope of improvement and strict compliance with regulations and norms is required.
There is a positive impact of corporate governance practices on market valuation and profitability
although the relationship may not be very strong and significant in all cases. Tshe future study on
the impact of improvement in corporate governance practices and disclosures over the period of
time may highlight its impact on improved financial performance.
India has proactively initiated corporate governance norms but the biggest challenge ahead is its
enforcement and implementation in true sense. The results of the study clearly indicate that most
of the companies have started following the provision of clause 49 and other mandatory provision
of company law act, 2013; however, this is restricted to only top few companies in each sector.
The performance in disclosing and following the corporate governance norms is very poor for rest
of the companies.
This study recommends that market regulators should be made more powerful and given a free
hand to prosecute the companies involved in frauds and high penalties should be imposed for not
following the mandatory requirements on time. Different functional committees of the board of
directors like ethics committee, audit committee, remuneration committee, investor protection
committee etc and also well defined whistle blower policy can play an effective role in ensuring

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 67

good corporate governance. There in a call for evolving corporate accountability movement in
India through well framed mandatory corporate reporting covering all aspects of social,
environment and economic performance. Moreover the corporate needs to understand the
implications of implementing good governance strategies and the actions that would help in
improving financial performance as well.
References
1. Abatecola, G. Caputo, A. Mari, M. & Poggesi, S. (2012). Relations Among Corporate
Governance, Codes of Conduct, And The Profitability of Public Utilities: An Empirical
Study of Companies on The Italian Stock Exchange. International Journal of Management.
29 (2), 611-625. [In the text citation: Abatecola et al, 2012]
2. Ajanthan, A. (2013). Impact of Corporate Governance Practices on Firm Capital Structure
and Profitability: A Study of Selected Hotels and Restaurant Companies in Sri Lanka.
Research Journal of Finance and Accounting , 4(10), 115-128.[In the text citation:
Ajanthan A,

2013]

3. Ananya, M. R. (2002). Corporate governance reforms in india. Journal of Business

Ethics, 37(3),

249-268.

Retrieved

from

http://search.proquest.com/docview/198065175?accountid=164287 [In the text citation:

Ananya M R, 2002]
4. Annalisa, P. & Yosef, S. (2011). Corporate Governance and Earnings Management in
Family-Controlled Companies. Journal of Accounting, Auditing & Finance. 26: 199227, doi:10.1177/0148558X11401212. [In the text citation: Annalisa and Yosef, 2011]
5. Bae, K. H. & Goyal, V. K. (2010 ) Equity market liberalization and corporate governance
. Journal of Corporate Finance 16 (5): 609 621. [In the text citation: Bae and Goyal, 2010]

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 68

6. Bauer, R., Guenster, N., & Otten, R. (2004). overnance in Europe: The effecton stock
returns, firm valueand performance. Journal of Asset Management. 5(2), 91-104. [ In the
text citation: Bauer et al, 2004]
7. Beiner, S., Drobetz, W., M. Schmid, M., & Zimmermann, H. (2006). An Integrated
Framework of CorporateGovernance and Firm Valuation. European Financial
Managemennt. 249-283. [ In the text citation: Beiner et al, 2006]
8. Bhalla, J. (2012). Corporate governance: Perception of executives in India. Review of
Management, 2(1),

35-43.

Retrieved

from

http://search.proquest.com/docview/1272287498?accountid=164287 [ In the text citation:

Bhalla, 2012]
9. Bhardwaj, N., & Raghvendra Rao, D. (2014). Corporate Governance Practices in India- A
Case Study. Asia Pacific Journal of Research, I(XIII), 43-43. [ In the text citation:
Bhardwaj and Rao, 2014]
10. Bijalwan, J. G., & Madan, P. (2013). Corporate governance practices, transparency and
performance of indian companies.IUP Journal of Corporate Governance, 12(3), 45-79.
Retrieved from http://search.proquest.com/docview/1431390798?accountid=164287. [ In
the text citation: Bijalwan and Madan, 2013]
11. Bhagat, S. and Bolton, B. (2008). Corporate governance and firm performance. Journal of
Corporate Finance. 14(3), 257-273. [ In the text citation: Bhagat and Bolton, 2008]
12. Bhasin, M. (2012). 'Voluntary' corporate governance disclosures made in the annual
reports: An empirical study. International Journal of Management and Innovation, 4(1),
46-67.

Retrieved

from

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 69

http://search.proquest.com/docview/1019286675?accountid=164287 . [ In the text citation:

Bhasin, 2012]
13. Bose, I. (2009). Corporate governance and law-role of independent directors: Theory and
practice

in

India. Social

Responsibility

Journal. 5(1),

94-111.

doi:http://dx.doi.org/10.1108/17471110910940032. [ In the text citation: Bose, 2009]

14. Botosan, C. (2006). Disclosure and the cost of capital: what dowe know? Accounting and
Business Researrch, Intemational Aecounting Policy Forum , 31-40. [In the text citation:
Botosan, 2006]
15. Brown, L.D. & Caylor, M.L. (2006). Corporate governance and firm valuation. Journal of
Accounting and Public Policy. 25(4), 409-434. [ In the text citation: Brown and Caylor,
2006]
16. Chatterjee, D. (2011). A content analysis study on corporate governance reporting by
indian

companies. Corporate

Reputation

Review, 14(3),

234-246.

doi:http://dx.doi.org/10.1057/crr.2011.13
17. Cheung, Y.-L., Stouraitis, A. and Tan, W. (2010). Does the Quality of Corporate
Governance Affect Firm Valuation and Risk? Evidence from a Corporate Governance
Scorecard

in

Hong

Kong.

International

Review

of

Finance.

10: 403432.

DOI: 10.1111/j.1468-2443.2010.01106.x [ In the text citation: Cheung et al, 2010]

18. Gompers, P., Ishi, J. L. & Metrick, A. ( 2003 ). Corporate governance and equity prices.
Quarterly Journal of Economics. 118 (1), 107155. [ In the text citation: Gompers et al,
2003]

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 70

19. Halder, A., Shah, R., & Rao, S. (2013). Does Board Independence Matters? Evidences
from India. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2350561 [ In the text
citation: Halder et al, 2013]
20. Hermes, N. and Katsigianni, V. (2011). Corporate Governance and Company Performance:
Evidence

from

Greece.

Retrieved

from:

http://ssrn.com/abstract=1980331 orhttp://dx.doi.org/10.2139/ssrn.1980331. [In the text

citation: Hermes and Katsigianni, 2011]
21. Kaur, G., & Mishra, R. (2010). Corporate governance failure in india: A study of
academicians perception. IUP Journal of Corporate Governance, 9(1), 99-112. Retrieved
from http://search.proquest.com/docview/197590635?accountid=164287. [ In the text
citation: Kaur and Mishra, 2010]
22. Klapper, L. F., & Love, I. (2002). Corporate Governance, Investor Protection, and
Performancein Emerging Markets. World Bank Policy Research Working Paper No. 2818.
Available

at

SSRN:http://ssrn.com/abstract=303979 or http://dx.doi.org/10.2139/ssrn.303979. [ In the

text citation: Klapper and Love, 2002]
23. Kohli, N., & Saha, G. C. (2008). Corporate governance and valuations: Evidence from
selected indian companies.International Journal of Disclosure and Governance, 5(3), 236251. doi:http://dx.doi.org/10.1057/jdg.2008.10 [ In the text citation: Kohli and Saha, 2008]
24. Kraus, P., & Britzelmaier, B. (2012). Corporate Governance and Corporate Performance:
A German Perspective. International journal of Management Cases. 327-340. [ In the text
citation: Kraus and Britzelmaier, 2012]

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 71

25. Kumar, J. (2004). Does corporate governance influence firm value? Evidence from Indian
firms. The Journal of Entrepreneurial Finance & Business Ventures, 9(2), 61-91. Retrieved
from http://search.proquest.com/docview/1030136017?accountid=164287 [ In the text
citation: Kumar, J. 2004]
26. Li, Y., & Yang, H. (2012). Disclosure and the Cost of Equity Capital: An Analysis at the
Market Level. [In the text citation: Li and Yang, 2012]
27. Maher, M., & Andersson, T. (1999). Corporate Governance: Effects on Firm Performance
and Economic Growth Organisation for Economic Co-Operation and Development. [ In
the text citation: Maher and Andersson, 1999]
28. Misra, D. and Vishnani, S. (2012). Impact Of Corporate Governance Regulation On Market
Risk.

Vikalpa.

37(2),

19-32.

Retrieved

from:

http://www.vikalpa.com/pdf/articles/2012/Pages-from-Vikalpa37.2-19-32.pdf [ In the text

citation: Misra and Vishnani, 2012]
29. Mohanty, P. (2003). Institutional Investors and Corporate Governance in India. National
Stock Exchange of

India

Research

Initiative Paper No. 15.

Available at

SSRN: http://ssrn.com/abstract=353820 orhttp://dx.doi.org/10.2139/ssrn.353820. [ In the

text citation: Mohanty P., 2003]
30. Monda, B., & Giorgino, M. (2013). Corporate Governance and ShareholderValue in Listed
Firms: An EmpiricalAnalysis in Five Countries (France, Italy,Japan, UK, USA). Retrieved
from http://mpra.ub.uni-muenchen.de/45422/. [ In the text citation: Monda and Giorgino,
2013]

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 72

31. Narayanaswamy, R., Raghunandan, K., & Rama, D. V. (2012). Corporate Governance in
Indian Context. Accounting Horizons. American Accounting Association. 26(3), 583599.
[ In the text citation: Narayanaswamy et al, 2012]
32. National Human Rights Commission (2012), Developing Code of Ethics for Indian
Industry, Final Report Institute for Corporate Sustainability Management Trust. Retrieved
from: http://issuu.com/icsmindia/docs/misc_dev_code_of_ethics_for_indian_
33. Nicosia, C., & Mudambi, R. (1998). Ownership structure and firm performance: evidence
from the UK financial services industry. Applied Financial Economics. 8, 175-180.
34. Patibandla M (2006), Equity Pattern, Corporate Governance and Performance: A Study
of Indias Corporate Sector, Journal of Economic Behavior & Organization, Vol. 59, No.
1, pp. 29-44. [ In the text citation: Patibandla, 2006]
35. Prasanna, P. K. (2013). Impact of corporate governance regulations on Indian stock market
volatility and efficiency. International Journal of Disclosure and Governance. 10(1), 1-12.
doi: http://dx.doi.org/10.1057/jdg.2011.28. [ In the text citation: Prasanna, 2013]
36. Raithatha, P. M., & Bapat, D. V. (2012). Corporate Governance Compliance Practices of
Indian Companies. Research Journal of Finance and Accounting , 19-26. [In the text
citation: Raithatha and Bapat, 2012]
37. Reddy, D. M. (2013). Corporate governance disclosures in indian industry: A critical
evaluation. Sumedha

Journal

of

Management, 2(4),

114-132.

Retrieved

from

http://search.proquest.com/docview/1462209070?accountid=164287. [In the text citation:

Reddy, 2013]
38. Roodposhti, F. R., & Chashmi, S. A. (2010). The Effect of Board Composition and
Ownership Concentration on Earnings Management: Evidence from IRAN. World

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 73

Academy of Science, Engineering and Technology , 135-141. [In the text citation:
Roodposhti and Chashmi, 2010]
39. Ruppen, D. A. (2002): Corporate Governance bei Venture-Capital-finanzierten
Unternehmen, Deutscher Universitts-Verlag, Wiesbaden. [In the text citation: Ruppen,
2002]
40. Sanan, N., & Yadav, S. (2011). Corporate governance reforms and financial disclosures:
A case of indian companies. IUP Journal of Corporate Governance, 10(2), 62-81.
Retrieved from http://search.proquest.com/docview/863851444?accountid=164287. [In
the text citation: Sanan and Yadav, 2011]
41. Sarpal, S. & Singh, F. (2013). Board size and Corporate Performance: An Empirical
Investigation. International Journal of Business Ethics in developing economies, 2(1), 1-8.
[In the text citation: Sarpal and Singh, 2013]
42. Sehgal, A., & Mulraj, J. (2008). Corporate governance in india: Moving gradually from a
regulatory model to a market-driven model -- A survey. International Journal of Disclosure
and Governance, 5(3), 205-235. doi: http://dx.doi.org/10.1057/jdg.2008.9. [In the text
citation: Sehgal and Mulraj, 2008]
43. Sharma, R., & Singh, F. (2009). Voluntary corporate governance disclosure: A study of
selected companies in india. IUP Journal of Corporate Governance, 8(3), 91-108.
Retrieved from http://search.proquest.com/docview/89164168?accountid=164287. [In the
text citation: Sharma and Singh, 2009]
44. Shukla, H. J. (2009). Corporate governance and Indian FMCG industry. IUP Journal of
Corporate

Governance, 8(1),

43-63.

Retrieved

from

Journal of Finance, Accounting and Management, 7(2), 53-74, July 2016 74

http://search.proquest.com/docview/197589945?accountid=164287. [In the text citation:

Shukla, 2009]
45. Subramanian, S., & Reddy, V. N. (2012). Corporate governance disclosures and
international

competitiveness:

study

of

indian

firms. Asian

Management, 11(2), 195-218. doi: http://dx.doi.org/10.1057/abm.2012.1.

Business

&

[In the text

citation: Subramanian and Reddy, 2012]

46. Tata, S. V., & Sharma, M. (2012). Corporate governance mechanisms and firm
performance: A study of indian firms.Journal of Commerce and Accounting
Research, 1(1),

11-17.

Retrieved

from

http://search.proquest.com/docview/1490668725?accountid=164287. [In the text citation:

Tata and Sharma, 2012]
47. Yami, R. P., Garkaz, M., & Saeeddi, P. (2014). Corporate Governance and Stock Liquidity.
International

Journal

Of

Current

Life

Sciences.

Retrieved

from:

http://bretjournals.com/sites/default/files/issues-pdf/ijcls2014122381_1417515158.pdf
In the text citation: Yami et al, 2014]