Abstract
Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak. We also find cross-sectional evidence of a positive relationship between firm market value and an overall governance index, as well as a subindex covering shareholder rights. The association is stronger for more profitable firms and firms with stronger growth opportunities.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 319-340 |
| Number of pages | 22 |
| Journal | Emerging Markets Review |
| Volume | 11 |
| Issue number | 4 |
| DOIs | |
| State | Published - Dec 2010 |
Funding
A copy of the survey is available on request from the authors. Most respondents held senior positions at their firms (309 were chief legal officer or company secretary; 42 were CFO or other senior finance official; and 10 were the CEO). The survey was supported by the Bombay Stock Exchange (BSE) and IIM Bangalore, one of India's top business schools. We mailed a survey to each firm, did follow up mailings and phone calls, and engaged the A.C. Nielsen survey research firm to visit firms. The higher response rates for non-BSE-500 firms (see Table 1 ) could reflect a tendency for A.C. Nielsen to contact firms with whom they had prior relationships. We promised confidentiality to respondents, and thus do not name individual firms in this paper.
Keywords
- Clause 49
- Corporate governance
- India
- Securities law
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics