Abstract
The paper deals with the issue whether the adoption of CG practices is associated with the firm ownership and capital structure. The authors have developed a relative disclosure CG Index using twenty parameters emanating from published annual reports. The beneficial influence of CG compliance was found independent of firm ownership structure. The extent of debt in the capital structure of the firm was found to influence CG. PSUs were a significant force in the emerging CG regime. Results indicate that greater CG compliance is significantly associated with firm’s market capitalisation. Firm operating performance (measured by ROA) has a positive association with CG and there also exists an association between ROA, ownership structure variables and debt equity ratio.
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