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Corporate Governance: An Empirical Study of Indian Companies

Authors: Shailesh Rastogi and Vinay K. Srivastava

Journal: Gurukul Business Review

Publication date: 2010

Publisher: Gurukul Business Review

URL: click here


Abstract:

Corporate governance ensures proper functioning of the companies in terms of transparency of disclosing financial information and having the proper shape of the Board of Directors. Formulating rules and laws does not ensure its proper and timely execution. There is always some gap between the rules and implementation by the corporate. It is the corporate who takes people’s money either directly or indirectly. Therefore it cannot be left unattended because of such high stakes. Corporate Governance is as good as insurance of the companies from any potential fraud. This gives sense of security to the existing as well as potential investors. Therefore the Corporate governance needs to be monitored or measured. This study develops a system for the measurement of the corporate governance initiatives. The developed system is then put in use and composite score of corporate governance initiatives is calculated and analyzed