A Study of Corporate Governance as a Tool of Value Creation in India

In the present era the interest of modern corporations are in corporate governance practices, basically in relation to accountability, increasing level of the high-profile collapses of a number of large corporations during 2001-2002, most of which involved accounting fraud; and then again after the recent financial crisis in 2008. Corporate scandals always attracted the public and political interest in the regulation of corporate governance. Corporate governance is required to build a corporate culture of consciousness, transparency and openness. It includes the combination of laws, rules, regulations, procedures and voluntary practices to enable the companies to maximize the shareholders' long-term value. This paper analysed that corporate governance practices of the sampled companies in association with the mandatory recommendations of Kumar Manglam Birla committee for improving it in India. Authors have sourced the data from S.K Gupta study. He has taken the opinion of the company secretaries and Chartered Accountants are associated on the question of adequacy of corporate governance measures available in India in today's scenario. The evidence collected from 150 respondents and 30 companies situated in and around New Delhi (India). This suggests that only few companies covered in the survey are complying with the mandatory recommendations of Birla Committee.