Impact of corporate governance disclosures on financial performance

Abstract

The belief that better Corporate Governance practices and Disclosure lead to a superior firm performance is widespread. This paper tries to investigate whether firms' Corporate Governance Disclosures lead to better financial performance or whether financial performance and Corporate Governance are not related. This study has been retrained only to the Indian Finance Sector and the variables measuring financial performance have been restrained to six variables namely Earnings Per Share, Market Price per Share, Dividend per Share, Return on Equity, Return on Assets and Return on Capital. A Sample of 15 companies from the Indian Finance Sector for a period of 5 years has been chosen having a background of different financial services. Regression analysis and correlation matrix has been used to determine the results.