Title: Effectiveness of corporate governance on market capitalisation of top Indian publically listed firms
Authors: Wishey Kataria; Vikas Deep
Addresses: School of Management Studies, Punjabi University, Patiala, Punjab 147002, India ' University School of Business Studies, Punjabi University, Regional Campus, Talwandi Sabo, Punjab 151302, India
Abstract: This paper examines the influence of corporate governance on the market capitalisation of Indian companies listed under BSE. The study concludes that there exists a positively significant relationship between board diversity attributes and market capitalisation of the firms. The results show a positive impact on the female board of director(s), firm age, and firm size. There is a positive relationship between the market value of the firm and the presence of women board of directors which explains the breach of the glass-ceiling effect for the Indian economy. The female board of directors is more hardworking and ready to accept major changes to improve the firm's efficiency and adds value to it indicating that women must have a place in the top management of companies. Further, the older firm has a good market reputation and firm size is also improved positively with market value.
Keywords: corporate governance; board diversity; market capitalisation; Bombay Stock Exchange; gender diversity; firm size; nationality diversity; firm age; qualification diversity.
International Journal of Environment, Workplace and Employment, 2020 Vol.6 No.1/2, pp.66 - 76
Received: 07 Dec 2019
Accepted: 30 May 2020
Published online: 05 Feb 2021 *