Does Corporate Governance is Relevant to Financial Performance of Agricultural and Allied Sector in India?

This research paper examined the effect of revised Clause 49, 2014 on agriculture and allied firms in India. The period of the study is of eleven years from 2007 to 2017. The analysis is done for two-time frames: 2007 to 2014 and 2015 to 2017. Furthermore, in the first time frame (2007 to 2014), the analysis is breakdown into two ways; one, taking first three years (2007 to 2009) and second for last five years (2010 to 2014). The regression results of first three years (2007 to 2009) is done to compare the results with second time frame (2015 to 2017) of the regression analysis. Analysis from 2010 to 2014 is done to know the impact of Clause 49, 2006 after first three years of its implementation. The nature of corporate governance is measure through six variables; board size, board independence, number of board meetings attended by the independent directors, percentage of annual general meeting attended by the independent directors, related party income and related party expenses. The results of the study suggests that revised Clause 49, 2014 does not have significant effect on the financial performance of the firms.