Impact of Corporate Governance on Financial Performance of Nifty 50 Companies: An Empirical Analysis

 A review on ‘Impact of Corporate Governance on Financial Performance of Nifty 50 Companies: An Empirical Analysis’

Amala Maria Jose et al.” Impact of Corporate Governance on Financial Performance of Nifty 50 Companies: An Empirical Analysis”. Indian Journal of Research in Capital Markets- ISSN 2394-3459 (July-September 2021): volume: 8, 22-36. Print.

The study was conducted to analyse the impact of corporate governance guidelines on the financial performance of the NIFTY 50 companies. In this study, the author used the CG score of the company to measure the performance. Throughout the study, the author focused on the concepts of corporate governance, profitability, financial performance, etc. The study takes into consideration the financial performance of the NIFTY 50 companies listed on the NSE for the financial year 2019. They examined the financial performance, board performance, and other pertinent factors. For conducting the study, they used 42 sample firms from NSE-listed companies during the year. A hypothesis was formulated to examine the relationship between corporate governance and the financial performance of the companies. In the study, different statistical techniques like correlation and regression were used to evaluate the relationship between variables. The correlation of data was taken to identify the relationship between the variables and regression techniques were employed to test the extent to which the dependent variables were affected by the independent variables and in what manner. This study revealed the result that corporate governance had no significant impact on the profitability of the companies. Thus, it can be concluded that the relationship between corporate governance and financial performance is dynamic. It was also found that the existing set of laws did not significantly impact the performance of companies. Therefore, the policymakers were advised to make the laws more stringent so that the CG guidelines by the statute shall be followed by every company resulting in their better performance. Furthermore, the study proposed an increased focus on practices that, in turn, would enhance the sustainability of a business.

Ms. Ashida. A. P, Assistant Professor of Commerce, Al Shifa College of Arts and Science, Kizhattoor, Perinthalmanna