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Corporate Governance and Firm Financial Performance A Case Study on EFFORT Conglomerate Companies

Corporate Governance and Firm Financial Performance A Case Study on EFFORT Conglomerate Companies

Corporate governance is considered nowadays as the prominent factors for the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting performance measured by Return on asset, Return on equity and Corporate Social Responsibility. To achieve the purpose 13 companies were selected from all sectors out of 14 EFFORT conglomerate companies. Both primary and secondary data were used. The primary data were collected using questionnaire and interview and the secondary data was gathered from annual reports of the companies for the period of 2009 to 2015. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 6 proxies for corporate governance practices. The random effect regression result entails that ROA has significant relationship with transparency and disclosure, board structure scores and stakeholders' right. Similarly, transparency and disclosure, stakeholders right and board structure were significantly associated with ROE. In addition, the corporate social responsibility expenditure to earnings ratio CSR was positively and significantly related with stakeholders' right and board structure scores and negatively and significantly associated with transparency and disclosure. However, pooled OLS regression result indicated that the overall corporate governance index score and firm performance has no significant association. D.M. Sheaba Rani | Redae Kahsay Adhena "Corporate Governance and Firm Financial Performance - A Case Study on EFFORT Conglomerate Companies" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-6 , October 2017, URL: https://www.ijtsrd.com/papers/ijtsrd2457.pdf Paper URL: http://www.ijtsrd.com/management/accounting-and-finance/2457/corporate-governance-and-firm-financial-performance---a-case-study-on-effort-conglomerate-companies/dm-sheaba-rani

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Corporate Governance under the Provisions of the Companies Act, 2013

Corporate Governance under the Provisions of the Companies Act, 2013

Corporate Governance is the set of policies that are created for deciding a company's performance and direction. It is an overview of rules and regulations for the executives of an incorporated firm. They are the ones who agree to take responsibility towards the shareholders. Corporate governance is a broad term in today's business environment. Corporate governance has become a widely discussed subject and a very important consideration for investors around the world. Investors and governments have started demanding better governance practices from all companies particularly after the wide publicity over corporate scandals such as Enron, Parmalat, Xerox, World Com, Satyam and many others during early parts of this century. The legal outfits of corporate governance can be customized to fit the meticulous choice of each wearer. The paper will discuss the corporate governance under Companies Act, 2013 in theoretical perspective. In addition, it will explain why it is important for any country to follow good corporate governance practices. It discusses on Board composition and Independence, Committees, Disclosures by Directors, Code of Conduct, Role of Independent Directors, Auditors, Duties of Board of Directors, Related Party Transactions, Disclosures in Annual Report, Corporate Social Responsibility etc. The paper gives overall view of the Corporate Governance requirements under Companies act, 2013. CS S Raja Babu "Corporate Governance under the Provisions of the Companies Act, 2013" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-1 , December 2017, URL: https://www.ijtsrd.com/papers/ijtsrd5972.pdf Paper URL: http://www.ijtsrd.com/management/law-and-management/5972/corporate-governance-under-the-provisions-of--the-companies-act-2013/cs-s-raja-babu

129 views • 10 slides


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