A STUDY ON IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF THE SELECTED IT COMPANIES IN INDIA

Abstract

The term "corporate governance" has recently gained popularity in the business world. It is regarded as a moral obligation. It entails promoting adherence to the law in letter and spirit and illustrating ethical behavior. Corporate governance is a critical procedure that influences an organization's financial performance. The main aim of this paper is to investigate the impact of corporate governance on the financial performance of the leading IT sector companies in India. For this purpose five leading IT sector companies (on the basis of market share) have been selected namely TCS, Wipro, Infosys, HCL Tech and Tech Mahindra. The present study is based on Secondary Data. Data of five years (from 2018-19 to 2022-23) have been analyzed through panel data regression. In this study, ROA and ROE are taken as performance indicators and Board Size, Board Composition, CEO Duality, Promoter’s Holding, Size and Age have been selected as independent variables. The outcome of regression analysis showed that only promoters holding and Size have significant positive influence on the ROA and ROE whereas, Age is having significant negative impact on them. Further, it is also concluded that corporate governance variables such as board size, board composition and duality have no significant impact on the performance of the leading IT companies in India.