Corporate governance and firm performance in an emerging economy context: new evidence from India

Bansal, Nidhi; Sharma, Anil

doi:10.1504/ijcm.2019.10022570

Cited by 4 publications

(1 citation statement)

References 66 publications

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“…This, in turn, contributes to the optimization of shareholders' wealth and the organization's overall performance. A group of researchers has found a positive linkage between audit committee independence & firm financial sustainability indicators (Bansal & Sharma, 2019;Bataineh & Soumadi, 2020;Javad et al, 2017). Thus, the following testable hypothesis is formulated:…”

Section: Audit Committee Independence and Firm Financial Sustainabilitymentioning

confidence: 99%

Board Governance, Earnings Management, and Firm Financial Sustainability: A Conceptual Overview From the Perspectives of Emerging Economies

Majumder,

Abdul Hamid,

Amin Noordin

2023

AJPBS

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The attainment of financial sustainability is of paramount importance for firms since it guarantees their enduring viability and achievement. It enables organisations to navigate periods of economic decline, allocate resources towards expansion prospects, and fulfill their commitments to employees and stakeholders. By focusing on Sustainable Development Goals (SDGs), this study aims to draw a conceptual framework for how board governance affects firm financial sustainability with the mediating effects of earnings management. This study expects board governance to be the significant determinant of firm financial sustainability, and earnings management will act as a key player in the relationship. To the best of our knowledge, this is a unique study that considers the mediating effects of earnings management in the association between board governance and firm financial sustainability. The result of this study will be useful for the regulators in enhancing the board governance issues to deter earnings management and to improve firm financial sustainability. The study will also add value as a battery for future research and studies, particularly in the context of board governance and financial sustainability relationships in emerging as well as developing economies with similar economic perspectives.

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Section: Audit Committee Independence and Firm Financial Sustainabilitymentioning

confidence: 99%

Board Governance, Earnings Management, and Firm Financial Sustainability: A Conceptual Overview From the Perspectives of Emerging Economies

Majumder,

Abdul Hamid,

Amin Noordin

2023

AJPBS

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Does audit committee composition influence firm performance? Evidence from the top NSE-listed non-financial companies of India

Singhania,

Panda

2024

AJAR

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PurposeThis study aims to examine the influence of Audit Committee (AC) composition on Firm Performance (FP) by measuring AC composition (ACC) with a composite score based on the varying effect of each composition-characteristic.Design/methodology/approachPartial Least Squares- Structural Equation Modeling (PLS-SEM) technique is used to weigh ACC characteristics. Based on 133 companies and covering five years from 2016 to 2020, the study analyses data after controlling endogeneity through the Gaussian Copula approach.FindingsWe find a significant positive influence of ACC on Firm Performance. Among the ACC characteristics, the absence of executive directors has the highest positive weight on ACC to influence FP, followed by AC size and Gender diversity. AC independence and members' accounting and financial expertise have no significant weight on its composition.Practical implicationsApart from the theoretical contribution, the study reveals that each ACC characteristic has a varying effect on AC effectiveness to influence the FP that needs to be considered by regulators while framing regulations on ACC and by BOD while constituting AC for a company.Originality/valueThe study claims originality by being pioneering to reveal that AC composition, with a synergy of its disparate characteristics, positively impacts FP. It highlights that the absence of executive directors and gender diversity in AC (characteristics overlooked by the extant literature) significantly and positively influence FP. Methodologically, it introduces the use of the PLS-SEM algorithm to weigh the characteristics in governance studies. Further, these findings remain relevant amid recent Indian legal reforms, offering contemporary insights for policy consideration.

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Do ownership structures and governance attributes matter for corporate sustainability reporting? An examination in the Indian context

Kumar

Kumari²,

Nandy³

et al. 2022

MEQ

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PurposeBased on the essence of the legitimacy and agency theories, this study empirically investigates the influence of corporate governance attributes and ownership structures on sustainability reporting of companies listed on the National Stock Exchange (NSE), India.Design/methodology/approachThe study is based on panel data regression analysis of sustainability reporting practices of 53 environmentally sensitive companies drawn from NIFTY100 Index at NSE. All data pertaining to sustainability information disclosure, ownership structure and corporate governance characteristics were sourced from sustainability report, business responsibility report, annual report and Centre for Monitoring Indian Economy (CMIE) database for the years 2015–2019.FindingsThe empirical result reveals that sustainability reporting scenario has been consistently improving in India. This study documents that government ownership and frequency of board meetings are the two most important factors significantly influencing the extent of sustainability information disclosure of companies. However, the present study failed to find any significant impact of board size and big4 auditing on sustainability reporting practices. Unexpectedly, a higher number of independent directors does not improve sustainability disclosure of companies in India.Originality/valueThis study is one of the first studies to investigate how the nature of ownership and corporate governance characteristics contribute to or impede sustainability reporting practices of companies in India. This study offers important insights to regulators, practitioners and investors to analyze whether sustainability disclosure of companies is influenced by corporate governance attributes. It also provides a perspective for regulators and corporate strategists to assess the impact of recent corporate governance reforms in India and consider how corporate governance mechanism can be used to improve sustainability reporting practices.

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Corporate governance and firm performance in an emerging economy context: new evidence from India

Cited by 4 publications

References 66 publications

Board Governance, Earnings Management, and Firm Financial Sustainability: A Conceptual Overview From the Perspectives of Emerging Economies

Board Governance, Earnings Management, and Firm Financial Sustainability: A Conceptual Overview From the Perspectives of Emerging Economies

Does audit committee composition influence firm performance? Evidence from the top NSE-listed non-financial companies of India

Do ownership structures and governance attributes matter for corporate sustainability reporting? An examination in the Indian context

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