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Impact of Corporate Governance and Financial Parameters on Profitability of the BSE 100 Companies

出版	SSRN, 2018
URL	http://books.google.com.hk/books?id=van9zgEACAAJ&hl=&source=gbs_api

註釋Corporate Governance is an act or manner of governing a company. It aims at promoting fairness, transparency and accountability of an entity. This paper attempts to study the extent to which the BSE 100 listed firms are following the corporate governance guidelines that are mandatory for the firms to adopt. Also the effect of corporate governance on the profit, return on equity and return on capital employed of the company is analyzed for the year 2015. The paper also aims to study the impact of financial variables on the company's profitability by way of stepwise regression analysis. The results of the study show that earnings per share, leverage, net worth, size of the company and share price are more or less the major factors that significantly impact the return and profit-earning capacity of any company. From the models, it is clear that with better corporate governance scores, firms can achieve greater returns on their capital invested. The results also state that 73% of the companies in the sample abide by all the regulations of the corporate governance. With the revision of corporate governance guidelines in terms of scope of independent directors, whistleblower policy, disclosure requirements and many more, other firms are also working towards achieving better scores and thus churning more profits.