ROLE OF CORPORATE GOVERNANCE IN INVESTORS DECISION MAKING

Abstract

The purpose of this study is two-fold: first to examine to what extent the investors are aware of the concept of Corporate Governance and secondly to find out whether the information disclosed by the companies as a part of Corporate Governance Practices is motivating the investors to make better investment decision. In order to achieve this objective an empirical method of research is employed.  A questionnaire from Credit Lyonnaise Securities Asia (CLSA), a brokerage firm, was adopted with necessary modifications to suit the requirement of this study. The sample consists of equity shareholders only. The respondents are equity investors. They are those people who have invested in a particular company for over one year as on March 31, 2021. This is done intentionally to ensure that they would have attended at least, one Annual General Meeting. Although, they may hold shares of more than one company, the respondents were advised to focus on any one of the companies in which they had been the shareholders for over a year, while answering the questionnaire. The reliability of the questionnaire was 0.847. This paper is covered in three sections. Section- A discusses the Review of Literature, section-B focuses on the research methodology followed and section-C dwells on the analysis.