An assessment and effectiveness of corporate governance in selective Indian companies

Abstract

This study is carried out to test whether there exists or not a significant relation between the CG scores and the internal and external variables of the companies, selected from the CNX FINANCE Sector Index on NSE. It shows that among all the variable selected index performance have no variance with CG. As per the ranking given to all companies for each variable, CG score rank for IDFC was high but on the other hand its performance as per the internal and external variables ranked low, this states that even after getting higher CG score the company is not performing well. According to the correlation matrix there exist a high degree of positive correlation between CG scores and ROA. The OLS analysis indicates that there is a significant relation between CG score and ROA and also with Index performance. Thus it is concluded saying that there is a significant impact of CG Scores on the financial performance of the company in terms of internal and external factors.