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Impact of Corporate Governance on Firm Performance: Evidence from Indian Leading Companies


Affiliations
1 Adama Science and Technology University (ASTU), Ethiopia
2 School of management, KIIT University, Bhubaneswar, Odisha, India
 

The purpose of this study is to investigate the impact of corporate governance variables on the company performance of Indian leading companies. The data were gathered from the f inancial reports of India leading companies for the period of f ive years (2012 - 2016). The effect of corporate governance variables (Chief Executive Off icer(CEO) duality, the board size, and the board independence) on company performance were plumbed by Return on Asset (ROA). The panel data of the study were analyzed by descriptive statistics(mean, standard deviation, maximum and minimum values), correlation, and regression analyses. The coeff icientsof correlationindicated that there is no multicollinearity problem of independent variables. The regression analysis is statistically not signif icant. The f indings showed that there is no epochal impact of corporate governance variables on the company performance of India leading companies in the sample.

Keywords

Corporate Governance, Company Performance, ROA, CSR.
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  • Impact of Corporate Governance on Firm Performance: Evidence from Indian Leading Companies

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Authors

Meseret Diriba
Adama Science and Technology University (ASTU), Ethiopia
Dharitri Basumatary
School of management, KIIT University, Bhubaneswar, Odisha, India

Abstract


The purpose of this study is to investigate the impact of corporate governance variables on the company performance of Indian leading companies. The data were gathered from the f inancial reports of India leading companies for the period of f ive years (2012 - 2016). The effect of corporate governance variables (Chief Executive Off icer(CEO) duality, the board size, and the board independence) on company performance were plumbed by Return on Asset (ROA). The panel data of the study were analyzed by descriptive statistics(mean, standard deviation, maximum and minimum values), correlation, and regression analyses. The coeff icientsof correlationindicated that there is no multicollinearity problem of independent variables. The regression analysis is statistically not signif icant. The f indings showed that there is no epochal impact of corporate governance variables on the company performance of India leading companies in the sample.

Keywords


Corporate Governance, Company Performance, ROA, CSR.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2019%2Fv15%2Fi1-2%2F190178