There is some interesting new data in this article.
Bala N. Balasubramanian
Indian Institute of Management Bangalore
Bernard S. Black
Northwestern University - School of Law; Northwestern University - Kellogg School of Management; University of Texas at Austin - School of Law; McCombs School of Business, University of Texas at Austin; European Corporate Governance Institute (ECGI)
Vikramaditya S. Khanna
University of Michigan Law School
The Relation Between Firm-Level Corporate Governance and Market Value: A Study of India
ABSTRACT: Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak, relative to developed countries. We also examine whether there is a cross-sectional relationship between measures of governance and measures of firm performance and find evidence of a positive relationship for an overall governance index and for an index covering shareholder rights. The association is stronger for more profitable firms and firms with stronger growth opportunities.