1. Dr. ASHA ELIZABETH THOMAS - Research Scholar, Lincoln University College, Malaysia & Assistant Professor, St. Paul’s College, Kerala,
2. Dr. BINO JOY - Associate Professor, Government College, Kottayam Kerala, India.
This research examines the impact of corporate governance (CG) initiatives on the performance of Indian non-financial listed companies included in the NSE Fifty (NIFTY index). After conducting various diagnostic tests, the study was conducted using the random effect regression estimation technique. To achieve the objectives of the study, the researchers had used balanced panel data related to companies for the last six years i.e., 2016-2021. The CG initiatives of selected companies were measured using board independence, dual board leadership or CEO duality, ownership concentration, gender diversity, board size, and the intensity of board activity. The firm performance in this research was measured using Net Profit Margin (NP) and Return on Assets (ROA). The results of the study supported the hypothesis that good corporate governance measures can lead to better performance in terms of indicators selected for the study. The variables CEO duality, ownership concentration, and gender diversity had shown significant positive effects on firm performance and board independence showed a significant but negative effect. Board size and intensity of board activity were found to have a statistically insignificant impact on firm performance. Among the control variables, leverage and the presence of institutional investors were positively affecting firm performance while the firm size was found to have an insignificant impact on firm performance. Hence the study concluded that listed companies in India can improve their overall performance by effectively implementing appropriate CG practices within the firm. The research will be highly beneficial to practitioners and researchers in India as the propositions of this study were empirically tested using a range of variables for measuring CG practices and for examining its impact on financial performance instead of depending on a single measure. The use of multiple variables for testing the proposed hypotheses has helped in improving the robustness of the model used in this research
Board size, CEO duality, corporate governance, Firm performance, Gender diversity, Ownership concentration, Stewardship Theory, Agency Theory.