Role of Corporate Governance in Organisation - A Study of Select Companies.
Sanjit Sarkar
Research Scholar
Kazi Nazrul University, Asansol, West Bengal, India
Abstract: Every global company follow corporate governance framework for maintaining high transparency and accountability. The study has been focused on Indian economy for giving a contrasting effect reflection of international economies. Firm performance is being impacted by internal control, remuneration and disclosures on shareholders rights. Economic downturns, maligned reputations and numerous scandals are raising factors that have created necessary CG (Corporate Governance) regulations. Most of the large global companies are putting effort in building concrete steps towards better CG to convert hard labour into profitability. “Market Based” and “Accounting Based” performance helps to evaluate a company’s on-going capacity to earn a better position of profitability. GOI formed “Companies Act 2013” with an objective to fulfil various regulations related to good governance. Accounting performance provides past financial information of a company and creates a scope for forecasting financial statements properly. ROA, ROE, ROS, “Net Profit Margin”, and “Return on Capital Employed” (ROCE) are certain mentionable techniques used to measure accounting performance. Further demographic analysis, descriptive statistics and correlation has been used to analyse the relation between corporate governance and financial performance. Data has been collected with the help of survey method and SPSS has been used to analyse the data. For a company or an organisation, it is essential to have proper corporate governance. This is because it helps in the improvement of the financial performance which results in the steady growth of the company. Therefore, this research has deduced the importance of corporate governance through the selected number of survey participants and applying SPSS.
Keyword: Corporate Governance Reforms, Financial Performance, Business Responsibility Reforms, Corporate Social Responsibility, Return on Capital, Return on Assets, Companies Act 2013, Indian Economy
