Fuzzy bundling of corporate governance practices and performance of Indian firms

Abstract

Purpose This paper aims to develop a framework that aids in achieving the desired state of financial performance for corporate enterprises based on distinct configurations of corporate governance (CG) practices. Design/methodology/approach This study uses a fuzzy-based system to arrive at a definitive configuration of CG practices that lead to a specific level of firm’s performance. Findings This analysis of the panel data of 92 National Stock Exchange–listed companies conducted for RONW on selected CG variables shows that eight fuzzy configurations lead to a particular state of RONW. The authors compare the results with the conventional regression-based scoring models. Originality/value Corporate enterprises can use the derived bundles of CG practices leading to a specific set of financial performance (RONW) to aid the decision-making process in defining and implementing their governance structures. The regulators can modify or customize the law-mandated CG practices to reduce redundancies and promote the national agenda of economic efficiency.

Corporate governance, CEO compensation, and corporate performance: evidence from India

“…The independent variable consists of two sets of variables. The first set includes several CG mechanisms, namely, block ownership (Kaur and Gill, 2009), ownership concentration (Luo, 2015; Ben Saad and Belkacem, 2022), outsider blockholder (Core et al , 1999), board size (Ullah et al , 2019; Agyei-Mensah, 2022; Menicucci and Paolucci, 2022), board independence (Agyei-Mensah, 2021; Aladwey et al , 2022; Chatjuthamard et al , 2022; Gupta and Mittal, 2022) and CEO duality (Ghosh, 2006; Aldogan Eklund, 2022; Khan, 2022). The ownership variables block ownership and ownership concentration aids in estimating the distribution of power between large and minority shareholders (Kaur and Gill, 2009), whereas outsider blockholder capture the influence of the external type of blockholder on the COMP decision (Boone et al , 2011).…”

Scoring Sustainability Reports for Assessing Environmental and Social Dimension of Leading Energy Sector Companies

“…It applies to the top 1000 listed companies by market capitalization, replacing the Business Responsibility Reporting (BRR) framework. The BRSR addresses significant gaps that existed in the previous BRR, particularly its limitation in providing solely qualitative information (Gupta and Mittal, 2022;Lim, 2022).…”

Configurational analysis of corporate governance and corporate social responsibility reporting assurance: understanding the role of board and CSR committee

“…In this vein, recent studies in the field of CG have highlighted the need for a more holistic approach instead of a one-size-fits-all perspective. As noted by authors such as Santamaria et al (2021), Gupta and Mittal (2021), Dwekat et al (2020a), Cucari (2019) and Jain and Jamali (2016), CG regulations should take into account the unique characteristics and contexts of individual companies, including their size, ownership structure, industry and business model. To this end, this study proposes using the Fs-QCA method, which combines qualitative and quantitative techniques in analysing the interactions between different board attributes and their impact on CG outcomes.…”