ISO 9001:2015

CORPORATE GOVERNANCE PRACTICES IN INDIA: AN EMPIRICAL STUDY WITH REFERENCE TO FAMILY-OWNED COMPANIES

The notion of corporate governance encompasses the administration and oversight of a company, conducted within a well-defined framework of stated objectives, principles, and ethics (Cadbury, 1992). Regrettably, during the course of history, worldwide investors have faced significant challenges due to the actions of unscrupulous managers and fraudulent schemes, as demonstrated by the behaviour of Enron, Adelphia, Tyco, Worldcom, Xerox, Paramalt, and Satyam. The above described events have considerably undermined confidence in the fundamental principles of corporate governance and supervision. Nevertheless, despite the introduction of numerous global initiatives in the form of legal frameworks and regulations aimed at promoting effective corporate governance in the business industry, there remains a lack of extensive scholarly discussion regarding the governance practices specifically employed by family-owned enterprises operating within India. In light of the significant impact that family firms have had on the Indian economy throughout history, it is essential to undertake a thorough examination and enhancement of their governance protocols. Beginning with Tata and subsequently encompassing Birla, Ambani, Goenka, Ruia, Mittal, and various other notable individuals. The corporate landscape in India is characterized by a notable historical context, marked by the prevalence of family-owned enterprises. These individuals have a crucial role in promoting the economic development of the country, creating job opportunities, and increasing the Gross Domestic Product (GDP). Furthermore, these entities play a pivotal role in facilitating the accumulation of foreign reserves through the facilitation of export growth and active involvement in cross-border mergers and acquisitions. The continuous challenges related to governance and succession policy may be responsible for the persistent disruptions in the operations of family-controlled enterprises in India. Recent events, such as the conflict between the Ambani siblings and the disputes around inheritance within the Birla family, have served as illustrative examples of this phenomenon. Based on the aforementioned context, the current study represents a modest endeavor with the objective of analyzing the state of corporate governance in prominent family-controlled firms in India.


DOI:

Article DOI:

DOI URL:


Download Full Paper:

Download