Corporate Governance and Ownership Structure as Determinants of Firm Performance : A Study of Indian Listed Companies

Authors

  •   Surbhi Jain Assistant Professor, Department of Business Economics, Aryabhatta College, University of Delhi, Plot No. 5, Benito Juarez Marg, South Campus, Anand Niketan, New Delhi, Delhi - 110 021
  •   Arjun Mittal Assistant Professor (Corresponding Author), Department of Commerce, Hansraj College, University of Delhi, Mahatma Hansraj Marg, Malkaganj, Delhi - 110 007
  •   Anand Mittal Professor, Department of Economics, Hansraj College, University of Delhi, Mahatma Hansraj Marg, Malkaganj, Delhi - 110 007
  •   Teena Bagga Professor, Department of Management Studies, Jamia Millia Islamia, A Central University, Jamia Nagar, New Delhi, Delhi - 110 025
  •   Kavita . Assistant Professor, Department of Management Studies, Aryabhatta College, University of Delhi, Plot No. 5, Benito Juarez Marg, South Campus, Anand Niketan, New Delhi, Delhi - 110 021

DOI:

https://doi.org/10.17010/ijf/2025/v19i6/175129

Keywords:

board independence

, corporate governance, firm performance, ownership structure.

JEL Classification Codes

, G30, G32, G34, G38, G39

Paper Submission Date

, September 25, 2024, Paper sent back for Revision, March 20, 2025, Paper Acceptance Date, April 25, Paper Published Online, June 15, 2025

Abstract

Purpose : The study was carried out to produce empirical evidence to examine the relationship among corporate governance (CG) parameters, ownership structure, and corporate performance.

Methodology : CG parameters included board size, CEO duality, board meetings attended, board busyness, and audit committee size and its independence. The ownership of the structure was determined by insider, foreign, and institutional ownership. A sample of 500 NSE-listed firms was selected for the study. Data analysis was conducted using STATA 17 and SPSS 25. Before conducting the regression analysis, the study undertook a series of diagnostic tests to ensure the reliability, robustness, and validity of both the dataset and the econometric models employed.

Findings : The findings indicated that CG variables and ownership structure had a positive impact on firm performance. To elaborate, CEO duality ; board meetings attended ; board busyness ; audit committee size ; and insider, foreign, and institutional ownership were found to have a positive impact on performance. However, neither board size nor audit committee independence established any influence.

Practical Implications : Companies may adapt their governance structures and diversity initiatives to enhance their competitive advantage and long-term sustainability. This study emphasized the importance of enhancing corporate governance (CG) and strengthening laws to achieve better firm performance in emerging markets. Additionally, the interests of insiders, as well as those of foreign and institutional investors, must be aligned with the company to support long-term wealth creation.

Originality : Instead of utilizing the standard system found in the literature, we relied on a single-measure structure that incorporated a variety of CG parameters and ownership.

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Published

2025-06-15

How to Cite

Jain, S., Mittal, A., Mittal, A., Bagga, T., & ., K. (2025). Corporate Governance and Ownership Structure as Determinants of Firm Performance : A Study of Indian Listed Companies. Indian Journal of Finance, 19(6), 8–28. https://doi.org/10.17010/ijf/2025/v19i6/175129

Issue

Volume 19, Issue 6, June 2025

Section

Articles
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