| 1 |
Author(s):
Shital Jhunjhunwala, Shweta Sharda.
Page No : 5-19
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INDIAN BOARDS AND CSR SPENDING
Abstract
Companies exist as sociological entities, who acquire resources from various
stakeholders to achieve their objectives, thus stakeholder theory of corporate governance
emphasizes their responsibility towards society to ensure success in the long term. As a
result, companies should engage in corporate social responsibility (CSR) activities for
welfare. To promote responsible business, CSR legislation was introduced in
the Companies Act, 2013. However, the CSR policy of a company is influenced by expectations; they have discretion over the allocation of amount on CSR activities. Thus the existence of robust
corporate governance becomes crucial in determining the extent of CSR expenditure. The study is therefore undertaken to investigate the role of the board in determining CSR
spending, using panel data of 719 Indian listed companies for the period 2015 to 2017.
The results found a negative impact of participation of non-independent directors in board meetings on CSR spending, indicating an ineffective role of the board in
sions. This implies need to review governance regulations and to take stringent action against noncompliance of
CSR.
| 2 |
Author(s):
Shasta Gupta.
Page No : 20-33
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RESOLUTION VS. LIQUIDATION UNDER IBC
Abstract
Resolution over the liquidation of a bankrupt company is desirable as it better protects the
interests of shareholders and employees. But, the number of liquidations have been
reported to be three times of resolutions under Insolvency and Bankruptcy Code of India.
Existing literature provides that bankrupt companies should be resolved or liquidated
depending on their potential to contribute to the economic growth of a nation. This study
attempts to determine whether outcomes of bankruptcy proceedings in India depend on
the competence of companies or not. It also delves into other factors impacting the
likelihood of survival of companies after bankruptcy proceedings. This study has used
logistic regression and independent sample t-test for analyzing 115 responses of
insolvency professionals on a questionnaire investigating reasons behind the outcome of
resolution vs. liquidation. Additionally, it has also used phenomenological analysis to
analyse the interviews of 10 insolvency professionals. Results reveal that the outcomes of
bankruptcy proceedings are not being based on the economic efficiency of companies.
However, if a company timely files for bankruptcy, it has 1.731 times the chances of
resolution over liquidation. Phenomenology has unfolded the plight of insolvency
professionals, incompetence of National Company Law Tribunal, and drawbacks of the
supremacy of committee of creditors.
| 3 |
Author(s):
Maria Cristina Mina.
Page No : 34-53
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OWNING STRUCTURE, RISK MANAGEMENT AND PERFORMANCE: THE CASE OF LATIN AMERICAN BANKS
Abstract
The analysis uses data gathered from a sample of 81 large banks from six Latin
American countries over the 2013 2017 period to examine the impact of alternative
ownership models, together with the degree of ownership concentration on
profitability, cost efficiency and risk management. Three main results emerge.
First, after controlling for bank characteristics, country and time effects, mutual
banks and state-owned banks exhibit lower profitability than privately owned
banks, in spite of their lower costs. Second, public sector banks have poorer loan
quality and higher insolvency risk than other types of banks while mutual banks
have better loan quality and lower asset risk than both private and public sector
banks. Finally, while ownership concentration does n
profitability, a higher ownership concentration is associated with better loan
quality, lower asset risk and lower insolvency risk. These differences, along with
differences in asset composition and funding mix, indicate a different financial
intermediation model for the different ownership forms
| 4 |
Author(s):
Anand Saxena, Rajni Jagota.
Page No : 54-74
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CG THEORY OF BUSINESS GROWTH
Abstract
The paper aims to develop a CG theory of business growth. It aims so on several counts.
One, several failures in corporate governance may be attributed to the pursuit of
untenable growth trajectories and the pace of growth. Two, separation of ownership and
management in corporate settings creates room for opportunistic managerial behaviour
vis-à-vis business growth that needs to be addressed by effective corporate governance.
Three, and as a corollary to two, whilst the extant CG theories viz., shareholder,
stakeholder and trusteeship theories do provide a normative template for effective
corporate governance, a more grounded CG theory of business growth is likely to
emphasize the governance discourse from, instead of compliance to performance. A CG
theory of business growth would be rooted more in the competence of the board and
other CG mechanisms than abstract moral integrity. Fourth, while the extant literature on
business growth does provide economic theory and managerial/ strategic theory
perspectives on business growth, a governance theory of business growth is conspicuous
by its absence. Generalizing the CG theory of business growth even further, the paper
delineates governance roles during the successive stages of business growth via
organizational transformation. Fifth, CG theory of business growth would be integrative
of the institutional context of corporate governance just the way variety of capitalism
(VOC) perspective permits acceptance of a variation in corporate governance
mechanisms across different setting viz., diffused ownership, concentrated ownership,
mode of finance, the scale of business, etc.
| 5 |
Author(s):
Samer Al-waeli.
Page No : 75-92
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CORPORATE GOVERNANCE AND SUSTAINABILITY OF FINANCIAL INSTITUTIONS: A COMPARATIVE STUDY OF GULF COOPERATION COUNCIL (GCC) COUNTRIES AND INDIAN BANKS
Abstract
Corporate governance has received much attention in recent years and its effect on the
sustainability of financial institutions in both developed and developing countries, especially in the context of strategic decisions which are crucial for the longevity of the
institution. This paper primarily focused to highlight the correlation between corporate
governance and sustainability of financial institutions as selected banks in GCC countriesand India. Sustainability of financial institutions which was measured by strategy policy
development while the corporate governance attributes included board composition, the
board size, independence of committees and duality, for the study. The study relies on
descriptive research design with a sample of 261 responses from a structured
questionnaire. Responses from both India and GCC countries' board members were
analyzed using descriptive statistics and multiple regression analysis. It has been found
that there exists a positive correlation between corporate governance and sustainability of
financial institutions in both India and GCC countries. Despite the fact that the state of
finance, the pattern of running the corporation and corporate culture is different but the
mechanisms followed for corporate governance to attain sustainability are symmetric.
Further, considering, the crucial role corporate governance mechanismmandates audit
committee to play, the Indian framework provided scope for that function in letter and
spirit, which is somehow missing in the GCC countries audit committees
