Evidence from Indian Companies Towards Corporate Governance and Firm Performances

In today's emerging market corporate governance has a significant impact on firm performances. To study this relationship the existing literature was reviewed and a examined the relationship between the performance of firm and corporate governance characteristics for selected Indian firms. Annual reports of the selected companies were studied to collect the secondary data and major information relating to board size, number of independent directors and dual responsibility status of CEO was extracted. Descriptives were calculated for the variables under study and correlation was computed to analyze the relationship between those variables. In order to test the significance of the relationship Regression analysis was done. It is found that CEO Duality has a weak positive correlation ship with the financial performance of the firm. The proportion of independent directors is also positively correlated with financial performance indicating that more the number of independent directors in the board, better is the financial performance of the firm and better is firm management