Corporate governance and investment decisions of retail investors in equity: do group affiliation and firm age matter?

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE Managerial Auditing Journal Pub Date : 2022-09-09 DOI:10.1108/maj-06-2021-3177
Dipanwita Chakraborty, Neeraj J. Gupta, Jitendra Mahakud, M. Tiwari
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引用次数: 5

Abstract

Purpose The purpose of this study is to examine the impact of corporate governance (CG) on the shareholding level of retail investors in Indian listed firms. Design/methodology/approach Primarily, a broad CG-index was constructed based on the Indian Companies Act, 2013; Clause 49 listing agreement; and Securities Contracts (Regulation) Act, 1956. Thereafter, a panel data approach has been used to examine the association between CG attributes and retail shareholdings (RSs) during 2014–2015 and 2018–2019. Findings Authors find that the firm-level CG quality positively affects retail investors’ shareholding level. The results explain that among various attributes of CG, retail investors pay more attention to firms’ audit and board information while making investment decisions. The results also reveal that the influence of CG attributes on RSs is lesser for group-affiliated, mature and large-sized firms than for stand-alone, young and small-sized firms. Practical implications First, the study provides new insight to the firms for increasing retail-shareholding levels and complying with India’s ongoing minimum public shareholding norms by improving CG practices concerning specific CG mechanisms. Second, it illuminates the regulators and policymakers to monitor and strengthen firms’ governance quality in light of ongoing regulatory reforms. Originality/value This study is a new investigation that explores the impact of CG on investment decisions of retail investors from the perspective of an emerging economy.
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公司治理和股权散户投资者的投资决策:集团关系和公司年龄重要吗?
本研究的目的是检验公司治理(CG)对印度上市公司散户投资者持股水平的影响。设计/方法/方法首先,根据2013年《印度公司法》构建了一个广泛的cg指数;第49条上市协议;和1956年证券合同(管理)法。此后,采用面板数据方法研究了2014-2015年和2018-2019年期间CG属性与零售持股(RSs)之间的关系。研究发现,公司层面的企业管理质量对散户投资者的持股水平有正向影响。结果表明,在企业意识的诸多属性中,散户投资者在进行投资决策时更关注公司的审计信息和董事会信息。研究结果还表明,相对于独立企业、年轻企业和小型企业,集团附属企业、成熟企业和大型企业的CG属性对RSs的影响较小。首先,该研究为公司提高零售持股水平和遵守印度现行的最低公众持股规范提供了新的见解,通过改进涉及特定CG机制的CG实践。第二,在当前监管改革的背景下,为监管机构和政策制定者监督和加强公司治理质量提供了启示。原创性/价值本研究是一项新的调查,从新兴经济体的角度探讨CG对散户投资者投资决策的影响。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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