Do corporate governance dynamics drive performance of state-owned and non-state-owned enterprises? An Indian perspective

IF 1.9 Q2 ETHICS Asian Journal of Business Ethics Pub Date : 2023-11-02 DOI:10.1007/s13520-023-00185-2

Khushboo Tanwer, Mahesh Chand Garg

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Abstract

The current study examines how corporate governance (CG) affects the business performance of state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). The data of 36 listed SOEs and 104 non-SOEs registered on the Indian BSE Dollex 200 has been endorsed for 10 years (2011–2012 to 2020–2021). Both random effects model and fixed effects models are used for analysis. Using regression analysis as a tool to check the impact of the board variables (board attendance, board meetings, board size, board independence and women directors) as CG indicators on firm performance (ROA, ROE and Tobin’s Q), this study reports that CG variables do not have any significant impact on the firm performance of SOEs other than appointment of the independent directors and board attendance. However, CG practices are significantly associated with the corporate performance of non-SOEs other than board meetings. This study provides insight into how CG practices affect SOEs and non-SOEs differently and highlights the importance of ownership pattern in the connection between CG standards and Indian corporate value.

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公司治理动态是否推动了国有和非国有企业的绩效？印度视角

本研究探讨了公司治理（CG）如何影响国有企业（SOE）和非国有企业（Non-SOE）的经营业绩。在印度 BSE Dollex 200 指数上注册的 36 家上市国有企业和 104 家非国有企业的数据得到了 10 年（2011-2012 年至 2020-2021 年）的认可。分析中使用了随机效应模型和固定效应模型。本研究以回归分析为工具，检验作为企业管治指标的董事会变量（董事会出席率、董事会会议、董事会规模、董事会独立性和女性董事）对企业绩效（投资回报率、投资收益率和托宾 Q 值）的影响，结果表明，除任命独立董事和董事会出席率外，企业管治变量对国有企业的企业绩效没有任何显著影响。然而，除董事会会议外，企业管治实践与非国有企业的公司绩效有明显关联。本研究深入探讨了企业管治实践如何对国有企业和非国有企业产生不同影响，并强调了所有权模式在企业管治标准与印度企业价值之间关系中的重要性。

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来源期刊

Asian Journal of Business Ethics ETHICS-

CiteScore

2.60

自引率

38.50%

发文量

期刊介绍： The Asian Journal of Business Ethics (AJBE) publishes original articles from a wide variety of methodological and disciplinary perspectives concerning ethical issues related to business in Asia, including East, Southeast and South-central Asia. Like its well-known sister publication Journal of Business Ethics, AJBE examines the moral dimensions of production, consumption, labour relations, and organizational behavior, while taking into account the unique societal and ethical perspectives of the Asian region. The term ''business'' is understood in a wide sense to include all systems involved in the exchange of goods and services, while ''ethics'' is understood as applying to all human action aimed at securing a good life. We believe that issues concerning corporate responsibility are within the scope of ethics broadly construed. Systems of production, consumption, marketing, advertising, social and economic accounting, labour relations, public relations and organizational behaviour will be analyzed from a moral or ethical point of view. The style and level of dialogue involve all who are interested in business ethics - the business community, universities, government agencies, non-government organizations and consumer groups.The AJBE viewpoint is especially relevant today, as global business initiatives bring eastern and western companies together in new and ever more complex patterns of cooperation and competition.