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.
Corporation and Enterprise Law | Law and Economics
Date of this Version
Bala Balasubramanian, Bernard S. Black, and Vikramaditya Khanna, "The Relation between Firm-Level Corporate Governance and Market Value: a Study of India" (April 2010). University of Michigan Program in Law and Economics. Working Paper 10.