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Evolving legal framework of corporate governance in India – issues and challenges

Author

Listed:
  • Pankaj Kumar Gupta

    (Centre for Management Studies, JMI University, New Delhi, India)

  • Singh Shallu

    (Centre for Management Studies, JMI University, New Delhi, India)

Abstract

Investors now started considering corporate governance as very essential factor before investment especially in view of the unstable environment in the securities market. It is considered that good corporate governance inspires, strengthens and maintains investor’s confidence by ensuring company’s commitment to higher growth and profits. Corporate Governance has become a major concern for global economies particularly the transition world. Sound corporate governance is extremely important for transition economies for creation of the key institutions, the private corporations, which drive the successful economic transformation to a market based economy, effective allocation of capital and development of financial markets, attracting foreign investment and making a contribution to the process of national development. The Corporate Governance issue has emerged primarily because of the growing importance of corporations in the national economies and their interaction with the international agencies and institutions. This paper presents the current scenario of corporate governance in India, the evolving legal framework and identified the major issues and challenges that need to be addressed to implement an effective system of corporate governance in India.

Suggested Citation

  • Pankaj Kumar Gupta & Singh Shallu, 2014. "Evolving legal framework of corporate governance in India – issues and challenges," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 4(2), pages 240-253, December.
    • Handle: RePEc:asr:journl:v:4:y:2014:i:2:p:240-253
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    References listed on IDEAS

    as
    1. Ayuso, Silvia & Argandoña, Antonio, 2007. "Responsible corporate governance: Towards a stakeholder board of directors?," IESE Research Papers D/701, IESE Business School.
    2. Rajesh Chakrabarti & William Megginson & Pradeep K. Yadav, 2008. "Corporate Governance in India," Journal of Applied Corporate Finance, Morgan Stanley, vol. 20(1), pages 59-72, December.
    3. Benjamin Mwanzia Mulili & Dr. Peter Wong, 2011. "Corporate Governance Practices in Developing Countries: The Case for Kenya," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(1), pages 14-27, February.
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    Cited by:

    1. Zulamir Hassani, Afdhal, 2019. "The Relationship Between Liquidity Risk and Internal and External Factors in TCL Corporation," MPRA Paper 97208, University Library of Munich, Germany, revised 20 Nov 2019.
    2. Faozi A. Almaqtari & Hamood Mohd. Al-Hattami & Khalid M. E. Al-Nuzaili & Mohammed A. Al-Bukhrani, 2020. "Corporate governance in India: A systematic review and synthesis for future research," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1803579-180, January.

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    More about this item

    Keywords

    Corporate Governance; Ownership; Control; Board of Directors;
    All these keywords.

    JEL classification:

    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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