Corporate governance practices, self-dealings, and firm performance: Evidence from India

Chauhan, Yogesh K.; Lakshmi, K. Rajya; Dey, Dipanjan Kumar

doi:10.1016/j.jcae.2016.10.002

Cited by 69 publications

(57 citation statements)

References 51 publications

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“…Some studies (e.g., Chauhan et al, 2016;Mashayekhi & Mohammad, 2008;Priego & Merino, 2016) suggested that firm size may affect firms performance. Therefore, net sales, firm age (number of years since its establishment), and firm size (total assets) are used as control variables; the natural a logarithm of total assets is used as an indicator of firm size.…”

Section: Methodsmentioning

confidence: 99%

“…It was found that board directors' independence plays an important role in reducing number of days' inventory holding period and cash conversion cycle. Chauhan, Lakshmi, & Dey (2016) examined corporate governance effect on the financial performance of 84 Indian firms for ten years from 2003 to 2013. The study found that there is a positive association between corporate governance variables and firms' performance which means that corporate governance is one of the factors that enhance firms' performance.…”

Section: Literature Reviewmentioning

confidence: 99%

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The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Yameen¹,

Farhan²,

Tabash³

2019

Journal of International Studies

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The growth of Indian companies in recent years has led to a change in the nature of the economy which attracted outsider investors from developed countries who demanded robust corporate governance practices from Indian companies which made regulators and competitors gave a great effort to restructure corporate governance. Therefore, this paper aims to investigate the effect of corporate governance practices on firms' performance, with a special reference to the Indian tourism sector. The study uses a panel dataset of 39 hotels listed on Bombay Stock Exchange (BSE) for the period from 2013/2014 to 2015/2016. The ordinary least square regression model is run for estimating the results. Findings show that board directors' size and audit committee's size negatively impact the performance of Indian hotels, while board directors' composition and diligence, the audit committee's composition and diligence, and foreign ownership positively affect the performance of Indian hotels measured by accounting proxies. Results also reveal that board directors' size, audit committee's size, and foreign ownership positively impact the Indian hotels' performance measured by marketing proxies, whereas board directors' composition; board directors' diligence; audit committee's composition; and audit committee's diligence have a negative impact on the performance of Indian hotels.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Yameen¹,

Farhan²,

Tabash³

2019

Journal of International Studies

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“…Tobin's q is defined and measured as the ratio of market value of assets to assets' replacement cost. ROA which measures the efficiency of assets utilization in the generation of revenue is defined and calculated as the ratio of net profit to total assets (Chauhan et al 2016). ROE is defined as the ratio of profit-after tax to net worth.…”

Section: Data Sources and Variablesmentioning

confidence: 99%

“…2013; Nakano and Nguyen 2012). The Firm growth opportunity is defined as the year-on-year proportional change in turnover (Chauhan et al 2016;Lenard et al 2014;McNulty et. al.…”

Section: Data Sources and Variablesmentioning

confidence: 99%

Board Rudiments and the Executive Attitude Towards Corporate Risk-Taking

Lawal¹

2018

IJFR

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This paper examines the effect of key board distinctiveness on managerial risk-taking behaviour. Using a total sample of 121 firms made up of 1,166 corporate directors and 847 firm-year observations, the study finds robust evidence across the three stages of estimation that suggests power separation in terms of CEO non-duality is negatively associated with executive risk-taking due to enhanced board assertiveness and independence. Board size is inversely associated with the variability of market value measure both within and at inter-firm levels. With average board membership in the study sample made up of 10 directors, the study finds crucial empirical evidence that points to the key benefits of large board configuration including the social capital, diversity of thoughts, knowledge, and experience, effectiveness and vigilance which curtails executive entrenchment. In contrast, the paper records positive association between the presence of foreign directors and corporate risk-taking. Due to their wealth of experiences, foreign directors tend to have more strategic sense of purpose and are likely not to hesitate in taking appropriate risk decisions when it really matters. While the paper finds little evidence that suggests a within-firm positive relationship between board independence and managerial risky propensities, there was no evidence found to indicate that board quality and ethnic diversity affects corporate risk-taking.

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“…Many academicians are interested to conduct study examining the impact of good corporate governance on the firm performance (Mashayekhi and Bazaz, 2008;Munisi and Randoy, 2013;Al-Najjar, 2014;Zagorchev and Gao, 2015;Balachandran and Faff, 2015;Subramanian, 2015;Abdallah and Ismail, 2016;Akbar et al, 2016;Ararat, Black and Yurtoglu, 2016;Chauhan, Lakshmi and Dey, 2016;Prommin et al, 2016). Good corporate governance could reduce the agency cost and make better protection for shareholder againts uncertainty in the future (Balachandran and Faff, 2015).…”

Section: Introductionmentioning

confidence: 99%

Could independent board, board meeting, audit committee, and risk committee improve the asset quality and operational performance a study of listed banks in Indonesia

Chou¹,

Buchdadi²

2017

Pressacademia

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Purpose -This study examines the impact of independent board of directors, board meeting, audit committee, and risk committee on bank practise in Indonesia. Methodology -Asset quality is measured by non-performing loans (NPL), and operational performance is measured by operational expense ratio (BOPO). While, as independent variables we used some good corporate governance variables including independent board (IB), the annual board meeting (BM), the percentage of annual board of director meeting attendance, the annual board-executive meeting (BEM), the percentage of annual board-executive meeting attendance, Audit Committee (AC), Audit Committee Meeting (ACM), the percentage of annual audit committee meeting attendance, Risk Committee (RC), Risk Committee Meeting (RCM), and the percentage of annual risk committee meeting attendance. The data are listed banks in Indonesian Capital Market during 2013-2015 using unbalanced panel data two stage least square (2SLS) regression. Findings-The findings reveal that independent board will improve the prudence principal of the bank. While the board of directors meeting will enhance the operational performance of the bank.In addition, the number of the audit committee will make better operational performance, while the number of meeting will improve the non-performing loan. Conclusion-Regarding these results the central bank and also the other stakeholders could maintain the role of the independent board of directors as well as the number of high quality annual meeting of the board. In addition, this study also reveals the role of the audit committee in banking business. This study supports the agency theory that monitoring activity will make the firm better performance.

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Corporate governance practices, self-dealings, and firm performance: Evidence from India

Cited by 69 publications

References 51 publications

The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Board Rudiments and the Executive Attitude Towards Corporate Risk-Taking

Could independent board, board meeting, audit committee, and risk committee improve the asset quality and operational performance a study of listed banks in Indonesia

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