Does Corporate Governance Regulations Influence Market Risk of Agricultural and Allied Sectors in India?

The study investigates whether revised Clause 49, 2014 has reduced market risk of Agriculture and allied firms listed in BSE. To investigate the impact of regulation on market risk, a sample of more than eleven years from the period January 2006 to March 2017 has been chosen. The study divides the time-period in two stages keeping revised Clause 49, 2014 as a benchmark; January 1st, 2006 to September 30th, 2014 as pre-CG regulation period and October 1st, 2014 to March 31st, 2017 as post-CG regulation period. The result shows that introduction of revised Clause 49, 2014 is unable to reduce market risk of the Agriculture and allied firms. This proposes that either investors do not give importance to the information provided through revised Clause 49, 2014 while investing in stock market or they are not able to understand the information clearly.