Prabandhan: Indian Journal of Management
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- PIJM-May12-Article5-Corporate Governance and Investment Decisions
- Price : 80.00
- Published on March 28, 2013
- Associated Management Consultants (P) Ltd.
- Issues 273
- Language - English
- Published daily
About this issue
There has been a growing international focus on Corporate Governance, particularly in the wake of worldwide financial turbulence and scams. As a result, investors have lost faith in the financial statements. After the Satyam scandal, investors suffered huge losses. Good corporate governance should aim at bringing the investors back to the market. A need was felt to know the linkages between corporate governance and investment decisions. A structured questionnaire was administered to brokerage firms to know the level of importance they attached to corporate governance while investing. Garrett ranking Test is used to know the key characteristics of good corporate governance, and the most desirable characteristic of the BOD from the view point of brokerage firms. Respondents ranked maintaining integrity of accounting statements as the most important characteristics for corporate governance, fewer possibilities of frauds (ethical behaviour) as the second most important characteristic, maximizing shareholders value as the third most important characteristic , followed by sound risk management practices and protecting minority shareholders’ interest. Keywords: Board of Directors, Corporate governance, Investment
About Prabandhan: Indian Journal of Management
Prabandhan: Indian Journal of Management, is a monthly journal that publishes papers on diverse areas of management such as International Business, Health Care Administration, Human Resource Management (HRM), Non-Profit Organizations, Operations Research/Statistics, etc.