Title: Study on corporate governance mechanisms

Authors: Rakesh K. Mishra; Sheeba Kapil

Addresses: Indian Institute of Foreign Trade, IIFT Bhawan, B-21, Qutab Institutional Area, New Delhi, 110016, India ' Indian Institute of Foreign Trade, IIFT Bhawan, B-21, Qutab Institutional Area, New Delhi, 110016, India

Abstract: This paper aims to review the empirical studies done for finding a relationship between corporate governance and firm performance. The review covers major theoretical and empirical papers on corporate governance and firm performance in developed economies. Apart from studies done in developed economies, studies done in emerging economies are also included in the review. Using a wide ranging literature review, the paper looks at corporate governance practices and value creation from a managerial control perspective. As a result of the study it has been observed that corporate governance is related to corporate performance and adoption of better corporate governance practices lead to better firm performance. Another aspect from this study is that availability of legal recourse ensures effective working of corporate governance mechanisms. This being a review paper, one of the major limitations for this review paper is an unintentional omission of some literature because of non-availability or non-reachability. Literature that would have been present in languages other than English could also not be included in the review.

Keywords: corporate governance; ownership structure; board of directors; value creation; managerial control; firm performance; emerging economies; literature review.

DOI: 10.1504/IJICBM.2016.074480

International Journal of Indian Culture and Business Management, 2016 Vol.12 No.2, pp.179 - 203

Received: 17 Dec 2014
Accepted: 31 Jan 2015
Published online: 31 Jan 2016 *

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