Abstract
This paper examines corporate governance's effect on the valuation of Earnings per Share (EPS) and Book Value (BV).Differently from empirical previous studies in the area of corporate governance and value relevance of EPS and BV, this study investigates this impact within a unique setting of publicly listed tourism firms Using panel data from a selection of some Bombay Stock Exchange (BSE) listed companies from 2013 to 2015. The paper explored three aspects of the mechanisms of corporate governance: the board of directors (size, composition and diligence), the audit committee (size, composition and diligence) and foreign ownership .The study uses descriptive statistics, correlation and multi-regression model to analyse the influence of corporate governance on the value relevance of EPS and BV for the Indian tourism industry. The results show that the interaction between corporate governance mechanisms and value relevance of BV has more impact on the share prices than EPS. It is recommended that the Indian tourism industry should pay more focus to corporate governance mechanisms in order to improve its value relevance of EPS, BV and share prices.
Highlights
The quality of financial reporting is a significant concern for both established and future investors (Chalaki, Didar, & Riahinezhad, 2012)
From previous empirical studies in the area of corporate governance and value relevance of Earnings Per Share (EPS) and BV, this study investigates this impact within a unique setting of publicly listed tourism firms Using panel data from a selection of some Bombay Stock Exchange (BSE) listed companies from 2013 to 2015
The results show that the interaction between corporate governance mechanisms and value relevance of BV has more impact on the share prices than EPS
Summary
The quality of financial reporting is a significant concern for both established and future investors (Chalaki, Didar, & Riahinezhad, 2012). Despite the plenteous studies on the influence of corporate governance mechanisms on the quality of financial reporting in developed countries, there is little evidence about this topic in emerging markets, especially in India. This study investigates the influence of corporate governance on financial reporting quality in the context of India. It discusses the effect of corporate governance on the quality of financial reporting in India, an emerging market. It evaluates the proxies for financial reporting quality developed by other studies.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
