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Corporate governance and value creation: a study of selected Indian companies

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  • Shinu Vig
  • Manipadma Datta

Abstract

Good governance is integral to the existence of a company. It inspires and strengthens investor confidence and has a fundamental role in evolving and shaping the overall business environment. In the Indian context there is scant literature on the impact of corporate governance on value creation. The purpose of the paper is to examine the impact of good corporate governance implementation on value creation by S%P Bombay Stock Exchange (BSE) Greenex companies of India, measured by economic value added (EVA). In this paper a corporate governance index has been attempted as a proxy to firm's corporate governance quality. The index is based on three main themes - board of directors, transparency and disclosure and investor relations. Economic value added (EVA) has been used as a measure of corporate value creation. The results show that quality of corporate governance has a positive relationship with value creation i.e., EVA of these companies. However, the impact is found to be not significant.

Suggested Citation

  • Shinu Vig & Manipadma Datta, 2018. "Corporate governance and value creation: a study of selected Indian companies," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 17(3), pages 259-282.
    • Handle: RePEc:ids:ijicbm:v:17:y:2018:i:3:p:259-282
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    Citations

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    Cited by:

    1. Leo Vashkor Dewri, 2022. "A Critical Assessment of Interrelationship Among Corporate Governance, Financial Performance, Refined Economic Value Added to Measure Firm Value and Return on Stock," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2718-2759, December.
    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.
    3. I. Sridhar & Sahil Singh Jasrotia, 2021. "Inclusive corporate governance for creating shared values: Indian experience," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 22(2), pages 272-286.
    4. Shinu Vig, 2024. "Environmental disclosures by Indian companies: role of board characteristics and board effectiveness," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 16-31, March.

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