Impact of Corporate Governance Practices and Its Performance: A Study of Select Public Sector Banks in India

Corporate Governance (CG) is all about the public trust, confidence of customers and investors and the shareholder's wealth. With increasing competition day by day the need for CG is also on the hot seat. The terms like integrity, openness, transparency, accountability which are necessary in decision making process are gaining the prominent place. So, we can say CG is the process and structure through which the affairs of firm are managed for enhancing these terms and ultimately the objective is to ensure shareholders wealth.

The present paper examines empirically whether the various elements of Corporate Governance affect the performance in the Indian commercial banks. The variables such as board size, board meetings, executive directors, non-executive directors and independent directors are measured through the performance measures such as Earning Per Share (EPS) and Tobin's Q in the select public banks in India. The period for the study is taken from 2009–2010 to 2013–2014. The data collected is purely based on secondary data. The sample of five banks has been selected on the basis of size of the total assets. The study found that board size is positively significant with the performance in case of EPS and negatively significant with the number of executive and independent directors in case of both EPS and Tobin's Q.