Corporate governance and firm performance relationship: Implications for risk‐adjusted return behavior. (26th August 2019)

• Record Type: Journal Article
• Authors: Dash, Saumya Ranjan; Raithatha, Mehul
• Is Part Of: Managerial and decision economics. Volume 40:Number 8(2019)
• Page Start: 923
• Page End: 940
• Publication Date: 2019-08-26
• Subjects: Managerial economics -- Periodicals; Decision making -- Periodicals; Management -- Periodicals; 658.15
• DOI: 10.1002/mde.3080
• Languages: English
• ISSNs: 0143-6570

Abstract

Abstract : We examine the impact of corporate governance on firm performance and stock return behavior using panel data for Indian listed firms for 2006 to 2015. Our results suggest that corporate governance improves firm performance. However, corporate governance information fails to provide excess risk‐adjusted returns to investors, as governance information is well assimilated in prevailing stock prices. In addition to extending the scant literature focused on emerging markets, our findings will prove useful to investors, fund managers, and rating agencies in making investment decisions and regulators in assessing the impact of governance norms.