An Empirical Study on Relationship between Corporate Governance and Financial Performance of Indian firms

Abstract

Corporate governance is the collection of rules, processes, and regulations that govern how companies in India and across the world function, regulate, and control themselves. With this definition, you may include everything from a company's owners and customers to its suppliers and regulators. It also includes management and the company's stakeholders as well. This research aims to discover whether strong corporate governance has an impact on the financial success of a sample of Indian companies. Wellregulated companies are assumed to always outperform moderately regulated ones in this research. Regression models, Anova, T-tests, and F-tests showed an unexpected result: There is a substantial positive connection between corporate governance and financial success. According to the findings, effective corporate governance contributes to a firm's profitability.