A Study of Value Relevance of Corporate Governance and its Impact

Abstract

In the present age of stiff competition across the globe, organizational effectiveness is dependent on how well they are utilizing the available resources. Corporate governance helps not only in Effective utilization of human resource but also in directing and controlling the organization. Though the corporate governance is known as a mechanism or system, by which companies are directed and controlled. In other words effective corporate governance may result in efficient operation and effective performance of the Organizations. Corporate Governance makes it very clear what are the rights and responsibilities of different stakeholders, participants, employees in the Corporation. It helps in providing effective structure which set and pursue their objectives. Another important aspect of the governance which is largely seen in the corporate is the nature and extent of accountability monitored. This research paper has discussed the value of the corporate governance in the corporate efficiency and effectiveness and also impact on Executive Compensation. The main aim of this paper is to examine the value relevance of corporate governance in organizational effectiveness and also to study its impact on overall Performance. Primary as well as secondary data will be used for this paper. Primary Data will be collected using a structured self-administered questionnaire. Using convenient sampling 50 full time executives were chosen as the study respondents. Secondary data has also been used in this research from Journals, Magazines, Research Papers, Reports, Magazine, Newspapers, websites etc. This study will contribute knowledge about Corporate Governance and its value in the organizational efficiency and development. This will also share the knowledge about the impact of corporate governance on having effective executive compensation practices in the organizations for better control, supervision and performance as well.