| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 14 |
NO. 2 |
PAPER 8 |
DOI: 10.5958/2321-2012.2018.00018.0 |
THE IMPACT OF BOARD STRUCTURE ON CORPORATE GOVERNANCE PRACTICES IN INDIA
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| Marxia Oli. SIGO*, Amirdhavasani, S *. and Felix Sophia, S.*
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| * Ph.D Research Scholar, Bharathidasan University, Tiruchirappalli.
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| India is one of the developing countries where corporate governance systems are in the evolutionary stage. Various reforms have been undertaken including establishment of the Securities and Exchange Board of India (SEBI) in 1992 and the formation of four major committees (Bajaj Committee in 1996, Birla Committee in 2000, Chandra Committee in 2002, and Narayanan Murthy Committee in 2003), to review governance issues and to propose governance laws and a new set of codes and practices. This study investigates the various aspects of corporate governance in India. It also examines different aspects of the effectiveness of boards of directors, board composition, board size, board leadership and board activity in relation to financial performance. The study used correlation analysis, to evaluate various factors and composition of board structure, to gauge the effectiveness of corporate governance. The results suggest that inclusion of more number of independent/outside directors, with diverse professional skills as well as increased public shareholding, would enhance professionalization of corporate boards and the efficiency of corporate governance practices in India. |
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