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Case Studies | Commerce and Economic Studies | India | Volume 12 Issue 10, October 2023 | Rating: 5.5 / 10
Impact of Corporate Governance on Financial Performance: A Study on Selected Commercial Indian Banks
Shukla Ayushi Arvind Kumar | Dr. Prashant Jariwala
Abstract: After 2008 global financial crisis, COVID-19 Crisis represented to be the most fundamental threat to the financial stability of a banking sector. Global Financial crunch made the Corporate Governance more prominent in banking sector. In India regulatory and supervisory standards with regards to appointment, roles and responsibility, remuneration, risk management, audit, evaluation of Board of Directors are the significant areas of good corporate governance which needs to be effectively enforced at individual level. The present study attempt to examine the impact of certain governance characteristics over the financial performance of selected 3 commercial public and private sectors banks over a time span of 2018-2022.Secondary data of 30 firm entries of banks collected on the basis of market capitalisation from their corporate governance report of banks which were analysed using panel regression through fixed effect model in which certain governance parameters like Board Size and No. of Independent directors having negative insignificant impact over the financial performance indicator i.e. ROE whereas the rest of variables like No. of female director, Board Meeting, and Executive director having positive significant impact over the financial performance indicator of the banks. Although with the constraints of time availability and sample present in study result will not be generalise for other categories but with more variability in governance variables and performance indicators research study will provide better insight to investors to take proper investment decision. Also not just regulation and code of conduct alone but risk management strategies and audit needs to be followed all the time by every directors to promote dynamic and stable financial sector.
Keywords: Corporate Governance, Financial Performance, COVID-19, Risk management
Edition: Volume 12 Issue 10, October 2023,
Pages: 2059 - 2065