Corporate Governance Index vis-a-vis Value Distribution Analysis
Vrajlal K. Sapovadia
Shanti Business School (SBS)
January 31, 2011
This study aims to develop Corporate Governance Index after investigating corporate governance practices in selected top Indian companies with reference to value distribution among all stakeholders of the company. Corporate governance stands on pillars of trust, ethics, morality, equity, legitimacy, transparency, value creation & value distribution. To justify good corporate governance, critical area of concern arises especially for transactions involving actual or apparent conflicts of interest of the key executives, and its proper disclosure in financial reports. Standards of corporate governance neither can be achieved nor be measured by structures and rules alone. Corporate Governance provides a framework, which encourage and support good governance, but what counts at last is the manner in which the value is created & distributed, among whom and how value is distributed.
The study investigates corporate governance practices through backward method but in conclusive & concrete manner on yardstick of value distribution. We study value distribution among the promoters/key officers of the selected top Indian companies and compares value distribution pattern among various stakeholders including the key officers of the private & public company in selected sectors.
The study encompass top Indian corporate houses appeared in Forbes Global 2000 list. We first investigates corporate government practices in public & private sector companies and analyzes factors, which influence value creation & value distribution, then we compare value distribution pattern by public & private companies in selected sectors so as to develop Corporate Governance Index.
Number of Pages in PDF File: 37
Keywords: Corporate Governance, Corporate Governance Index, Value Added Statement, Value Distributed
JEL Classification: G3
Date posted: February 1, 2011