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Corporate governance practices in Indian firms

Published online by Cambridge University Press:  02 February 2015

Hima Bindu Kota  and
Sarika Tomar
Hima Bindu Kota
Affiliation:
NIILM-Centre for Management Studies, New Delhi, India
Sarika Tomar
Affiliation:
NIILM-Centre for Management Studies, New Delhi, India
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Abstract

In the wake of recent financial scandals and in the context of the global financial crisis, corporate governance is especially significant. We examine the effect of corporate governance practices on the performance of 106 mid-sized firms in India, between 2005 and 2007. Our results confirm a significant relationship between CEO duality and firm performance. We also find that a small board is more effective and enhances the value of the firm. However, in the Indian context, we find that non-executive independent directors are failing in their monitoring role.

Keywords

corporate governancenon-executive directorsCEO dualityaudit committeesboard sizeTobin's q
Type
Research Article
Information
Journal of Management & Organization , Volume 16 , Issue 2 , May 2010 , pp. 266 - 279
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2010

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