Corporate Governance Policy Implications & Theories Effecting Financial Performance of Listed Companies in India

Abstract

The purpose of this study is to investigate the impact of corporate governance variables on the company performance of Indian leading companies. The data were gathered from the f inancial reports of India leading companies for the period of five years (2019 - 2023). The effect of corporate governance variables (Chief Executive Off icer(CEO) duality, the board size, and the board independence) on company performance were plumbed by Return on Asset (ROA). The panel data of the study were analyzed by descriptive statistics(mean, standard deviation, maximum and minimum values), correlation, and regression analyses. The coeff icientsof correlationindicated that there is no multicollinearity problem of independent variables. The regression analysis is statistically not signif icant. The findings showed that there is no epochal impact of corporate governance variables on the company performance of India leading companies in the sample. The paper’s main objective is to determine the relationship between CG performance scores and firm financial performance. Moreover, the methods used to check for possible errors in the regression model are also detailed. These tests are intended to increase the reliability of the research results. Finally, an explanation of the research results is offered.