CORPORATE GOVERNANCE & COMPANY PERFORMANCE: A STUDY ON RELVANCE

Abstract

This paper focuses on the thorough analysis of concept of corporate governance. Corporate governance is a set of principles, systems and processes governing a company. These principles and systems provide desired guidelines for directing and controlling a company to fulfill its purpose and objectives in a manner which will add value to the company and will also be beneficial to all its stakeholders. Essentially it would include every stakeholder be it employees, shareholders, directors, management customers and also society at large.

Broad objective of this research is to analyze the role of corporate governance in fulfilling corporate commitment to its stakeholders. The essence of good governance is a framework which ensures effective accountability of management towards all its stakeholders’.Corporate Governance is not a new concept but the relevance has increased overtime. This is an analytical study to find out whether corporate governance has any impact on the financial performance of the selected IT companies. Company’s performance has been taken as proxy for its commitment to stakeholders and various corporate governance variables like board size, composition of board, frequency of meetings has been chosen along with control variables and an analysis has been conducted to find out the relationship between the two.