Corporate Governance & Economic Performance – Impact Analysis of Companies Listed on S&P BSE IT index

Abstract

The study examines the influence of Corporate Governance index on economic performance of entities listed on S&P BSE IT index in India. The prime focus of this research is to elaborate the role played by corporate governance index in influencing the economic performance of companies quantified through accounting measures like ROA, EPS and market measures namely P/E and EV/EBITDA.  A corporate governance index using 7 sub-indices consisting of 44 points is used as a proxy to measure corporate governance. The study is carried out for 4 years 2017-18 to 2020-21 for 49 companies listed on S&P BSE IT index companies. Pooled OLS, panel data regression is used for analysis and Hausman Test is used to choose between Fixed and Random effects model. The results of random effects model are more reliable as per Hausman test. The results reveal a significant influence of corporate governance index on EPS and EV/EBITDA.