Corporate Governance Reforms and Their Influence on Indian Corporate Sector Performance

Authors: Tushar A Raut, Priya Yadav

DOI: https://doi.org/10.37082/IJIRMPS.v13.i3.232402

Short DOI: https://doi.org/g9g7j9

Country: India

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Abstract: This study aims to examine the gradual evolvement of corporate governance reforms in India and assess their impact on corporate performance and issues encountered while implementing them. This is based on the descriptive qualitative methodology to comprehensively review scholarly articles, industry reports, and regulatory documents to analyze key governance reforms pertinently, including Clause 49, the Companies Act of 2013, and Securities and Exchange Board of India, Listing Obligations and Disclosure Requirements Regulations (2015). The findings have revealed that such reforms have enhanced financial transparency and strengthened the shareholder's rights, as well as have shown improvement as per various key performance indicators (KPIs)- like Return on Assets, and market valuation-reducing chances of fraud and increasing financial stability. However, family-owned businesses often resisted many of the governance norms imposed on them, leading to superficial compliance and, ultimately, impediments to the overall effectiveness of those reforms. The study concludes that uneven enforcement and regulatory loopholes constrain the achievement of consistency in governance standards. The study shall recommend better enforcement mechanisms and strengthen board independence and greater Environmental, Social, and Governance integration for accountability. The findings would most likely be practically useful to policymakers, regulators, and corporations alike regarding pushing toward their sustainable and transparent governance practices.

Keywords: Corporate Governance, Governance Reforms, Indian Corporate Sector, Financial Performance, Transparency and Accountability

Paper Id: 232402

Published On: 2025-05-01

Published In: Volume 13, Issue 3, May-June 2025

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