The Relation between Firm-Level Corporate Governance and Market Value: A Study of India

The Relation between Firm-Level Corporate Governance and Market Value: A Study of India

Bala Balasubramanian, Bernard Black, Vikramaditya Khanna

Series number :

Serial Number: 
177/2011

Date posted :

May 01 2011

Last revised :

December 06 2018
SSRN Share

Keywords

  • India • 
  • Securities Law • 
  • Corporate governance • 
  • Clause 49

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.

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Published in

Published in: 
Publication Title: 
Emerging Markets Review
Description: 
Vol. 11, pp. 319-340, 2010

Authors

Real name:
Bala Balasubramanian
Professor
Real name:
Bernard Black
Fellow, Research Member
Northwestern University Law School and Kellogg School of Management Law School