Does Corporate Governance Mechanism Influence Financial Returns? Evidence from Indian Manufacturing Companies

The financial growth of a nation and its inherent organisations is being increasingly dependent on compliance with the corporate governance norms. It not only attracts investments into an organisation but contributes to its growth also. The manufacturing industry is one of the wheels of growth and is also emerging as one of the high growth sectors in India. The importance of corporate governance is rising with time and it is particularly significant for the manufacturing sector. In this article, an attempt has been made to assess the impact of corporate governance on the financial return (ROE and ROA) of manufacturing companies. The results of multiple regression showed that none of the corporate governance variables has a significant impact on both ROA and ROE.