The role of corporate governance in the performance of manufacturing firms of India
Shivani, Dr. Anupa Singh
The present study is an attempt to measure the relationship between corporate governance and firms’ performance. It examines whether the board characteristics have any impact on performance measures of a firm. The study uses board size, board meetings, board independence as corporate governance surrogates from different dimensions along with other widely uses of independent variables to assess their impact in a panel data-based regression. The data covers the time period from 2016-17 to 2021-22. The findings provide mixed results between the board characteristics and the firm performance. Board size and firm performance is statistically significant with return on assets and Tobin’s Q. Whereas, board independence, board meetings and CEO duality are not statistically significant with both accounting-based measure of performance and market-based measure of performance. The main value of this paper is the analysis of the effect of corporate governance on performance measures on manufacturing companies. In this work an attempt is made to study the impact of corporate governance in the determination of firm value in the manufacturing firms in India. The data were analyzed using a multiple regression analysis to identify the factors that affect firm value. It is found that the firm value is significantly affected by the corporate governance variables for manufacturing firms.