34 Pages Posted: 9 Apr 2010 Last revised: 7 Jul 2011
Date Written: July 8, 2010
Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak, relative to developed countries. We also examine whether there is a cross-sectional relationship between measures of governance and measures of firm performance and find evidence of a positive relationship for an overall governance index and for an index covering shareholder rights. The association is stronger for more profitable firms and firms with stronger growth opportunities.
Keywords: India, securities law, corporate governance, Clause 49
JEL Classification: G38, K22
Suggested Citation: Suggested Citation
Balasubramanian, Bala N. and Black, Bernard S. and Khanna, Vikramaditya S., The Relation between Firm-Level Corporate Governance and Market Value: A Study of India (July 8, 2010). nearly final version, published in Emerging Markets Review, Vol. 11, pp. 319-340, 2010; ECGI - Law Working Paper No. 177/2011; Northwestern Law & Econ Research Paper No. 10-10; U of Michigan Law & Econ, Empirical Legal Studies Center Paper No. 10-011; U of Texas Law School, Law and Economics Research Paper No. 180. Available at SSRN: https://ssrn.com/abstract=1586460 or http://dx.doi.org/10.2139/ssrn.1586460