The Impact of Corporate Governance on Firm’s Performance-A Case Study of Rashtriya Ispat Nigam Limited
Author : Prof. V Appa Rao and G Sandheep
Abstract :
Corporate governance is one of the most discussed topics in the present corporate world and its economic systems and the term has become a dynamic word in India as well as the world over. Corporate governance is referred to as a system by which a firm is directed and controlled through a set of rules and principles to achieve its objectives and it has gained its attention with greater popularity in 1998 especially in India with the publication of the Voluntary Code by the Confederation of Indian Industry. Since a good corporate governance could significantly contribute to advance the interests and rights of stakeholders as it produces better management and fair allocation of the company’s resources hence the concept of Corporate Governance has gained even more importance in its practice, implementation and impact on the performance of companies in the modern era thereby drawing attention of the researchers to research on its implications on firm’s overall performance from time to time. However, the corporate governance practices have found to be slightly weaker in developing countries where in India is not an exception and the firms were often suggested for the implementation of good practices with a proactive approach and genuine interests of the stakeholders, the study on such grounds becomes even more significant. For this purpose, one such premier and oldest firm has been taken into consideration that is Rashtriya Ispat Nigam Limited with intent to study the impact of Corporate Governance on the Firm's Performance of selected Public Sector Undertakings.
The present study is a descriptive and empirical study based on secondary data intended to identify the extent to which Corporate Governance has an impact on the Firm's Performance. The result of this empirical study revealed that the components of corporate Governance plays an important role in the firm's performance. The correlation also shows that components of corporate Governance have a high level of positive association with the firm's performance.
Keywords :
Corporate governance, practices, stakeholders, firm’s performance, proactive approach, profit maximization public sector undertakings
