International Journal of Academic Research and Development

International Journal of Academic Research and Development


International Journal of Academic Research and Development
International Journal of Academic Research and Development
Vol. 5, Issue 4 (2020)

An empirical study of corporate governance and firm performance: Selected CNX nifty companies


Payal S Jogani, Rupal N Patel

The present article endeavors to analyze internal association among corporate governance, capital structure, ownership structure, and firm performance in India. The study practices panel data of all CNX Nifty companies from 2015 to 2019. By using LSDV panel data models and 2SLS model the outcome reveals that that good corporate governance practices adopted by companies are positive in regards of financial performance. Board independence, number of board committees, and director remuneration are found to have positive relationship while Number of Directors, ownership by promoters, and financial leverage have negative relationship with performance. It has been observed bi-directional relationship between corporate governance and financial performance. Companies with sound financial performance are more likely to conform to corporate governance norms and standards and implement sound corporate governance system. Further, the outcomes disclose that corporate governance practices adopted by the listed firms depend on their ownership structure. Ownership concentration is found to effect corporate governance negatively.
Pages : 130-137 | 142 Views | 37 Downloads