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AN EMPIRICAL EXAMINATION OF THE IMPACT OF CORPORATE GOVERNANCE DISCLOSURE ON FINANCIAL PERFORMANCE

Arunima Haldar, S.V.D. Nageswara Rao

DOI: 10.22495/cocv12i3c4p7

Abstract

The Indian corporate governance relationships have evolved over time as a result of both formal and informal stakeholder interactions, with changes to Clause 49 triggering a further evolutionary move in Indian corporate governance towards global benchmarks. This study seeks to gain insights into how the regulatory changes impacted corporate governance (CG) practices in India by measuring their effect on performance. We construct a "CG Compliance Index" using three important governance mechanisms for the year 2008. The analysis reveals that majority companies have complied by the regulations depicted by high CG compliance score and have a significant positive relationship between CG Compliance Index and the market measure of financial performance of companies.

Keywords: Financial Performance, Corporate Governance Compliance Index, India

How to cite this paper: Haldar, A., & Nageswara Rao, S. V. D. (2015). An empirical examination of the impact of corporate governance disclosure on financial performance. Corporate Ownership & Control, 12(3-4), 468-473. doi:10.22495/cocv12i3c4p7

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