Corporate Governance Practices In India

Corporate Governance Practices in India examines corporate governance practice in Indian industry. This book critically analyses the governance practice and evaluates the needs of corporate governance in the two major industries in India: Auto Industry and Heavy Engineering Industry.

Contents Include : Corporate Governance Conceptual Framework; Studies On Corporate Governance; Developments In Corporate Governance; Corporate Governance Practices An Empirical Analysis; Conclusions.

Corporate Governance Practices in India examines corporate governance practice in Indian industry. This book critically analyses the governance practice and evaluates the needs of corporate governance in the two major industries in India: Auto Industry and Heavy Engineering Industry.

This book looks at how we can promote better governance practices in business organizations of developing economies. It presents a mix of conceptual perspectives and observations on corporate governance practices in a concise manner and illustrates through empirical evidence drawn from the Indian business environment. The secondary data analysis provides insights into Indian firms' corporate governance practices. This book is a useful reference for anyone who wishes to identify leading practices and develop broad recommendations applicable to corporate governance practices in developing economies in general.

The subject Corporate Governance:Global Concepts and Practices has occupied centre- stage, particularly since the early 1990s in U.K., USA, rest of Europe, Canada, Japan, India and many other developing countries of the world. The present volume is essentially a comprehensive textbook, focusing on both concepts and corporate governance practices. Even before the Enron collapse and several other kingsize scandals, there has been a steadily mounting volume of complaints regarding the dismal state of governance in most large corporates across the globe, mostly relating to accounting irregularities and top dressing of financial results, almost universally perpetrated at the behest of the Company Chairman & CEO himself. Keeping the above ground realities in view, the present volume is intended to be a standard reference as well as textbook on the varied facets of corporate governance. The book has six distinct parts, containing in all as many as twenty-eight interrelated chapters.The first part deals with subjects like business environment, business ethics and social responsibilities, management of a firm, etc., while the second part is concerned with the theory of firm, its objectives, accounting standards and creative accounting practices. Part Three of the book dwells at length on the working of the company board, board committees, need for whistle blowing, corporate governance rating and need for separation of the positions of Chairman and CEO. Part Four presents summary recommendations of five Indian Committees on corporate governance in chronological order. These are (i) CII Committee (1998), (ii) Ist SEBI Committee (1999), (iii) Ganguly Committee-RBI (2002); (iv) Naresh Chandra Committee (2002) and (v) 2nd SEBI Committee (2003). Part Five contains six chapters comprising as many live cases on accounting scams. The sixth part of the book contains governance reports of three world class companies from India, viz., Infosys Technologies Ltd., Wipro, and Reliance Industries Ltd.

With the increasing awareness that mere economic and production-based explanations do not adequately describe the motivations for governance, researchers have focused on the behavioral side of the firm performance to justify the economic rationale of their typical behaviours. This book describes the concept of corporate governance, its emergence and the contemporary thinking around it. With emphasis on "conflicts of interests" assumed to be related to the theory of separation of ownership and control, the book delves into topics such as insider trading, excessive executive compensation, managerial, expropriation of shareholders’ wealth, false reporting, accounting non-disclosures and self dealing.

Corporate governance is part of an economy's system which has today become the most important mechanism for resource allocation. It is affected by capital market, block holders, institutional investors, proxy wars, company law and capital market regulations, and many other macro-economic as well as political factors. Historical evolution of corporate governance naturally has a bearing on current developments. This book is an attempt to weave these factors together coherently. Much of the concerned literature revolves around the agency problem, while in developing countries expropriation of small shareholders is the governance problem. However, shareholder activism is not likely to resolve the issue. Many more measures, from audit committees of the board, rigorous disclosures, exercise of voting rights by institutional investors, strict monitoring by capital market regulator to takeover bids are required to ensure corporate accountability.