Corporate governance in listed Indian banks an empirical investigation

Empirical

The present study intends to study the phenomenon of corporate governance with reference to banks being the most imperative industry having systemic repercussions and to build empirical evidence for following governance mechanism and improving the performance of banks as long-term survival strategy. It attempts to fill the void of the available published literature on corporate governance in Indian banking sector providing empirical evidence towards the impact and effectiveness of basic variables of governance on performance and financial strength of public and private sector banks listed in India. It investigates whether governance mechanism has any effect on the financial indicators of long term sustainability and returns of banks.

The results of the study provide evidence towards the essence of corporate governance and its contribution towards the net worth of the bank. Further, it highlights that corporate governance may not affect the performance of banks significantly but definitely contributes to the net worth, which is the most pertinent element for financial strength, stability and growth.

The findings of the study provide insights to policy makers for addressing the weak areas of banks’ corporate governance. It presents the observations of those who practice corporate governance and seek improved implementation to enhance the long term stability and sustenance of Indian banking.