Impact of Corporate Governance on Growth and Performance of listed Public Sector and Private Sector Undertakings in India A Comparative Study

Abstract

In this study an attempt is made to examine corporate governance practices in Public newlineSector Undertakings and Private sector undertakings in India and its impact on the newlineperformance of these sectors. The corporate frauds and scams rattled the interest and newlineconfidence of stakeholders of Public sector Undertakings in the corporate world and newlinestudies prove that public companies are failing to perform higher than private sectors newlineand some public companies are sick and closing down and the investors are not able newlineto assess which company is safe for investments, thus a strong code of corporate newlinegovernance is imperative. Listed PSUs are required to comply with Clause 49 of the newlineSEBI Listing Agreement, it is now mandatory for all Central Public Sector newlineEnterprises (CPSEs) also to comply with the corporate governance norms as provided newlineby MCA, the private sectors have scored high by adopting CG codes voluntarily in newlinetheir quest for improved transparency and accountability. This study poses the newlinedifference between compliances of corporate governance of PSU and Private Sector newlineenterprises and examine the nature of relationship between corporate governance newlinepractices of these companies in India in terms of Growth and financial performance newlineunder the purview of clause 49. Financial Growth and performance can be best newlinemeasured on the basis of Increase in investments, Rate of return, capital employed, newlineemployment generation, contribution to Net Domestic product, Profitability and newlineexamining Indicators of financial performance. Further this study will investigate the newlinedifference in both public and Private Sector in their growth and performance since the newlinetime when SEBI made adoption of revised clause 49 as mandatory to all listed newlinecompanies i.e. from 2010. This study will address two issues, to investigate the newlinerelationship between CG and financial performance. And also developing a model of newlineCG commonly for both sectors by framing an index of corporate governance. newlineThis study investigates the above-mentioned questions by embarking the gaps in the newlinelite