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2022 | Book

Corporate Governance Mechanisms and Firm Performance

Lessons from India

Authors: Prof. Shveta Singh, Dr. Monika Singla

Publisher: Springer Nature Singapore

Book Series : India Studies in Business and Economics

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About this book

This book begins by analysing the various corporate governance mechanisms explored in the extant literature and determining their effectiveness in enhancing the firm value using multivariate analysis. The findings are of global relevance as the corporate governance regulations of most countries focus on independent directors as the mainstay of good governance. The empirical evidence from the first objective of this study corroborates the claim that independent directors do not strengthen the firms’ governance quality. The book is one of the few works to have analysed the possible reasons behind the ineffectiveness of the independent directors. Also, in view of the famous concept of the bundle of governance mechanisms, it might be possible that the independent directors strengthen the firms’ governance quality indirectly by strengthening other governance mechanisms. This aspect too has little precedence. This study adopts a novel moderation and mediation approach to analyse the monitoring behaviour of independent directors in relation to other governance mechanisms. The work is a must read for corporate players as well as researchers and scholars studying this discipline.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
The origin of the word “governance” can be traced to the Latin word “gubernare” (Tricker, 1984), which means “to rule” or “to steer” (Maassen, 2002). The word “corporate governance”, thus, limits the scope of “governance to the “governance of the corporations. With a similar viewpoint, the Cadbury committee report defines corporate governance as “the system by which companies are directed and controlled” (Cadbury, 1992).
Shveta Singh, Monika Singla
Chapter 2. Evolution of Corporate Governance in India
Abstract
Corporate governance in India gained significance after liberalization of the Indian economy in 1991 when competition from foreign players forced the Indian companies to focus on their governance practices.
Shveta Singh, Monika Singla
Chapter 3. Research Methodology
Abstract
The current chapter presents the testable hypotheses in line with the research objectives, delineates the scope of the study and presents the methodologies deployed to achieve various objectives of the study.
Shveta Singh, Monika Singla
Chapter 4. Corporate Governance Mechanisms and Firm Performance
Abstract
The objective of the firm is to maximize the wealth of the shareholders, and hence the firm value, and various corporate governance mechanisms are put in place to achieve this objective. In this light, the current chapter aims to analyze if the various governance mechanisms are effective in enhancing firm value (and thus, shareholders’ wealth) measured with Tobin’s Q ratio.
Shveta Singh, Monika Singla
Chapter 5. Performance Enhancement Effect of Board Independence
Abstract
This chapter attempts to examine whether the independent directors can enhance the firm performance by strengthening some other governance mechanisms. A related review of literature provides support to the positive effect of board independence on two governance mechanisms: audit quality and foreign institutional investment (FII).
Shveta Singh, Monika Singla
Chapter 6. Constraints Diluting the Effectiveness of Board Independence
Abstract
The current chapter deals with the analysis of third broad objective of the study. This objective is related to the empirical analysis of factors which can explain the ineffectiveness of independent directors in India.
Shveta Singh, Monika Singla
Chapter 7. Concluding Observations
Abstract
This chapter concludes the research work and presents a summary of the entire work. The chapter is outlined as follows: Sect. 7.1 presents an objective-wise summary of the findings. Recommendations from the findings form the content of Sect. 7.2. Section 7.3 outlines the contributions of the study. Limitations of the current work and scope for future research are presented under Sect. 7.4. Finally, Sect. 7.5 presents the concluding remarks.
Shveta Singh, Monika Singla
Metadata
Title
Corporate Governance Mechanisms and Firm Performance
Authors
Prof. Shveta Singh
Dr. Monika Singla
Copyright Year
2022
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-19-2460-6
Print ISBN
978-981-19-2459-0
DOI
https://doi.org/10.1007/978-981-19-2460-6

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