Arindam Gupta

An Enquiry Into Compliance of Corporate Governance Codes By the Private Sector Indian Companies

In line with the international trend SEBI has promulgated clause 49 (and later on revised clause 49) in the form of Corporate Governance (CG) Codes for the listed Indian Companies. The present study attempts to find out the degree of compliance of the CG codes by private sector Indian companies listed in BSE. Data regarding 1245 companies for the year 2004-2005 are taken for the present study. Data have been collected from the CG report (which is included in Annual Report) of these companies. 21 codes (19 mandatory and 2 non-mandatory) have been selected for study. Compliance rate of CG codes has been first tested individual company-wise. Further, mean compliance rate (taking into account all the companies under the study) and the variation among the companies from the mean compliance rate have also been tested. It is observed that more than 70% of the sample companies comply with 80% or more of the codes. In respect of code-wise compliance rate, the compliance rate is greater than 80% in respect of 17 codes. Almost all the companies have compliance rate which is significant even at 1% level. The grand compliance rate is significantly greater than of variation of compliance is significantly less than 18.77% at 1% level.

Impact of ownership structure, board composition and CEO characteristics on corporate performance: An indian study

The purpose of this paper is to examine empirically the relationship between ownership structure, board composition, CEO Characteristics and firm performance in the context of selected Indian companies. The present study has been conducted taking 168 Indian companies listed in the BSE-200 Index of Bombay Stock Exchange (BSE) with their seven consecutive years’ data from 2010 to 2016. To finding out the empirical relationship, panel data regression model is used. Empirical findings assert that promoters’ shareholdings and institutional investors’ shareholdings have the significant and positive relationship with corporate performance. Again the number of directors has a positive significant relation with firm performance. A negative relation is documented in the case of independent and executive directors of the board with firm performance. Further, the multiplicity of directorship shows positive and statistically significant relation with ROCE and CEPS, whereas negative relation with Tobins Q and MVA which are not significant. With the help of empirical evidence, this study sought that promoters as the most significant stakeholder in Indian corporate sector empirically too who are highly protective of their investment and aim towards an increment in the value of their company. A larger size and less independent corporate board are also recommended to get better performance in the Indian context, though an optimum size cannot be recommended in this study.

Impact of Ownership Structure and Board Composition on Corporate Performance in Indian Companies

Abstract This study takes into account the National Stock Exchange (NSE)-listed Indian companies, which constitute the CNX Nifty Index, for the period from 1 April 2009 to 31 March 2013. Tobin’s Q, market value added, cash earnings per share and return on capital employed have been used as the corporate performance variables in the study; the first two being market-based and the last two being accounting-based measures. Board size (BS), board composition, ownership structure, multiplicity of directorship, chief executive officer (CEO) duality, CEO tenure and executive remuneration have been used as corporate governance surrogates from different dimensions along with other widely used independent variables to see their effect on corporate performance in a panel-data-based regression. BS and foreign promoters’ (FPs’) shareholdings have been identified to have a positive impact on more than one corporate performance variable. Among the remaining independent variables, assets turnover is positively related with the performance variables.