Suchergebnisse

Corporate Governance and Fraud Risk Management in India presents a thorough examination of corporate frauds in India focusing specifically on promoters, controlling share holders of companies and certain intermediaries. By examining the role of the macroeconomic environment that induces law-abiding citizens to indulge in violations of the law and by analysing the relationship between policy distortions and weak regulatory and enforcement mechanisms, this book emphasizes the need to shed the general atmosphere of cynicism in order to channel well-thought improvements that will strengthen and reinforce the laws and regulations governing corporate frauds in India. While this book will appeal to anyone interested in understanding the nature of corporate governance and fraud risk management in India, it will be especially useful to investigators, forensic auditors, prosecutors, lawyers and judges. Chapters one to ten detail the modus operandi of different kinds of corporate frauds. Chapters eleven and twelve will be useful for policy makers and economists interested in improving corporate governance in India. Bankers will find the analysis of different corporate frauds useful in refining their risk management strategies, specifically in relation to lending. Investors, chartered accountants and investigative journalists will also find this an interesting read.

Purpose
The purpose of this study is to shed light on the influence of climate governance on carbon emission disclosure.

Design/methodology/approach
This study is based on S&P BSE 500 Indian firms over six years, i.e. from 2016–2017 to 2021–2022. The panel regression has been used to determine the association between climate governance and carbon emission disclosure.

Findings
The results of this study suggest that climate governance exerts a significant influence on corporate carbon emission disclosure. Moreover, results corroborate that climate governance elements such as the environment committee, carbon strategy and environment management system are critical contributors to carbon emission disclosure.

Practical implications
This study adds to the emerging literature on climate change, carbon emission disclosure, corporate governance and climate governance.

Social implications
This work provides valuable insights to corporate managers and policymakers as the study concludes that climate governance enhances firms' carbon emission disclosure.

Originality/value
Earlier literature has examined the influence of corporate governance on carbon emission disclosure. However, this study extends to the corporate governance literature by providing novel insights into how integrating climate governance elements into corporate governance can influence carbon emission disclosure. Moreover, to the best of the authors' knowledge, this study is the first to explore the association between climate governance and carbon emission disclosure in the Indian context.

Purpose
The purpose of this paper is to seek to shed light on the influence of stakeholder pressure on carbon disclosure in an emerging economy.


Design/methodology/approach
The present study is based on Bombay Stock Exchange 100 Indian firms for the period of 5 years from 2016–17 to 2020–21. The association between stakeholder pressure and carbon disclosure, along with certain control variables, has been explored through a regression model.


Findings
The results of the study suggest that stakeholders exert a significant influence on corporate carbon disclosure. Further results confirm that regulatory and customer pressure have the most significant and positive influence, while shareholders and creditors exert a significant and negative influence on carbon disclosure. The study also finds that employee pressure does not have any association with carbon disclosure.


Practical implications
This study adds to the existing literature on climate change, carbon disclosure and stakeholder pressure.


Social implications
The present study provides useful insights to corporate managers and policymakers as the study concludes that stakeholders exert a significant influence on carbon disclosure.


Originality/value
Previous studies examining the stakeholder pressure on carbon disclosure ignored emerging economies, while the present study has considered India, which is a developing as well as an emerging economy. Further, to the best of the authors' knowledge, the current study is the first of its kind to investigate the stakeholder pressure on carbon disclosure in the Indian context. The present study develops a comprehensive index to measure corporate carbon disclosure.

PurposeThe purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India.Design/methodology/approachMost of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing.FindingsThe results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model.Practical implicationsThe findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards.Originality/valueThe present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

The present empirical investigation is an addition to the existing extant literature available on the issue of initial public offering (IPO) which sees its inherent anomaly of underpricing by linking it to some of under-researched dimensions of corporate governance in the emerging economy of India. This study incorporates about 443 Indian IPO firms with their board composition and ownership retained by promoter group post IPO being primary variables of focus which are obtained from respective prospectuses of such firms. Like many previous studies, this study also keeps signalling theory as base, and findings show that only interlocking of directors among all the board variables has a significant and negative relation with underpricing. Significant relation of ownership concentration in hands of promoter group with underpricing shows that it is considered as a signal by investors assisting them in gauging safety of their minority interests. Findings show that too high insiders' ownership alignment of interest between promoters and minority holders turn into risk of entrenchment by initial investors, that is, promoters as perceived by investors.

The present study aims to identify the drivers of corporate risk disclosure in the Indian listed non-financial companies over a period of 6 years. A sample of 318 companies from Business Today's list of top 500 companies has been analyzed using Panel data regression. Multiple theoretical perspectives have been employed such as agency, signaling, stakeholders and political cost theories in explaining the drivers of corporate risk disclosure. The findings provide crucial understanding for the investors, lenders and other prime stakeholders of key drivers of risk disclosure which will assist in the investment decision. The results conclude that corporate governance in the form of large boards, gender diversity in the boardrooms and independent directors on boards are positive drivers of risk information, whereas CEO duality restricts such information which is alarming. Larger, less profitable, low liquid and firms reporting more risk information in the past divulge more information on risk confronted by them. Analogously, the study widens the knowledge in the Indian context which possesses a lot of potentials to attract international investors who are in search of information to demarcate strongly managed companies than their counterparts.

Small and medium enterprises (SMEs) being relatively new, young and with little operating history tends to suffer from the problem of information asymmetry and ex ante uncertainty. This problem can be reduced through the use of various signals in the initial public offering (IPO) process. Hence, this study attempts to shed some light on the signalling role of prestigious auditors and underwriters and their interacted effects on IPO returns in an emerging market like India. Cross-sectional data comprising of final 286 SME IPOs issued during February 2012–March 2018 listed on the BSE SME platform and NSE EMERGE have been taken into consideration. Multiple regression analysis has been used to empirically test the signalling role. The results reveal that underwriter reputation helps in reducing information asymmetry and signals firm quality to investors. Underwriter reputation documents a positive relationship while auditor reputation lacks statistical significance. The negative relation of interaction effect of auditors and underwriters reveal that underwriter reputation plays a significant role in positively influencing investors' perception and assisting them in taking investment decisions.

The present research article is an attempt to add something new and revalidate the influence of already existing corporate governance dimensions related to the board of directors on listing-day performance of the Indian initial public offering (IPO) firms measured through underpricing. Like other emerging market economies, firms in the Indian economy are also characterized by concentrated ownership held by an owner or a promoter in the context of the Indian corporate environment. In the backdrop of this concentrated complex ownership structure, the present study analyses the influence of the board of directors on underpricing when the appointment of such directors is largely an affair handled by such owners, whom they are given the task to monitor. The sample consists of 471 IPO firms which went public during the time period from January 2003 to December 2017. Results obtained from the regression analysis show that the board size and board committees act as information signals for Indian IPO firms having a significant and negative relation with listing-day initial excess returns. Other board-related dimensions of governance do not have significant influence on underpricing. Overall board variables have a very miniscule contribution in explaining the underpricing in Indian IPO firms.

The centre of interest of this research article is the association between chief executive officer (CEO) characteristics and firm performance. Employing a sample of Nifty 500 firms, the support found recommends that demographic and job-related characteristics may be related with the firm's financial performance. We consider CEO gender, duality, nationality, remuneration and education level as CEO characteristics and we employ return on assets (ROA) as a representative for firm performance. This study widens the understanding of the important function played by the CEO and provides better insight into CEO-specific variables. Specifically, the reported findings specify a positive relationship between CEO remuneration and firm performance, thus indicating that compensation acts as a good inducement for executives to yield finer firm performance while CEO nationality appears to inhibit it, steering foreign directors to a minority spot. This implies that remuneration should be more thoughtfully attached to performance, so that proficient CEOs are not lured by more tempted compensation elsewhere and the decision to engage foreign nationals to company boards must be based on norms other than the firm's future financial performance.

Drawing inference from signalling theory, the study attempts to examine the relation between corporate governance and corporate reputation in the Indian context. There is hardly any study directly deciphering the impact of board attributes (like size and ownership pattern) on corporate reputation (taking market capitalisation as proxy) in India. Based on a sample of 403 Indian companies listed on the Bombay Stock Exchange (BSE), the results of panel regression indicate that board size and ownership pattern influence the assessment of a company's reputation, which is in line with the findings of previous research on this issue in developed nations. It is also found that firms who allow access to institutional investors and those with larger boards exhibit better reputation. Overall, the findings of the current study support the proposition that board characteristics influence the formation of firm reputation by the business community. The study bears significant implications for corporate managers that along with improving financial performance, social performance and media visibility, they should give significant weightage to good governance and management quality (reflected through board attributes) to enhance firm reputation and gain competitive advantage over others.

A major landmark that took place in the history of India was Securities and Exchange Board of India's (SEBI) resolution to make IPO grading mandatory with effect from 1 May 2007. But SEBI's decision to make IPO grading voluntary with effect from 4 February 2014 has made researchers reexamine the impact of this verdict on underpricing. Multivariate regression analysis run on the data collected from 164 graded initial public offerings (IPOs), which are issued during mandatory grading regime (from 1 May 2007 to 4 February 2014) in the Indian capital market, reveals the efficacy of IPO grading in lowering underpricing. The implication for the naive investors is that the assessment tool dispensed by the market regulator to make splendid investor choice was actually proving its worth for them as well as for the issuer company in lowering the anomaly they face in the form of underpricing. It was concluded that graded IPOs faced lesser underpricing, thereby making quizzical SEBI's verdict.

This article examines the effect of lead manager's (LM) reputation on the survival profile of Indian initial public offerings (IPO) in the post-Securities and Exchange Board of India (SEBI) era. The study analyzes the relationship between the involvement of expert intermediary and the probability of delisting as well as the time duration of post-IPO failure. For this, logistic regression and parametric survival analysis models have been employed. The study reveals that IPOs backed by highly reputed LMs are less likely to get delisted and exhibit longer survival duration in the market. Overall, the results indicate that expert market intermediary plays a crucial role in acquiring the resources for successful development of newly listed issues, which in turn enhance its survivability in the aftermarket. The present study provides all new evidence on the value of reputable LMs' involvement on subsequent survival of newly listed firms.