| 1 |
Author(s):
Shann Turnbull.
Page No : 4-30
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THE CASE FOR RADICAL REFORM OF CORPORATE GOVERNANCE: A NARRATION
Abstract
Laureate Ostrom (1990) identified how pre-modern societies avoided “tragedies of the commons”
from self-interests by forming “polycentric republics” to promote common interests. Business
examples are identified with author created civic and sporting examples. A defining feature of selfgoverning polycentric republics is a duality of competing contrary and/or complementary
characteristics introducing Tensegrity. This Yin ~ Yang feature is inherent in ecological
governance found in nature. Tensegrity is described by biologists as the “architecture of life” and
a quantum physicist as the architecture of the universe. Command and control hierarchies that
dominate modern society and governance research inhibit the DNA programmed human
complementary ~ contrary behavior. Radical governance reform is required to use and amplify
human behavioral Tensegrity to reliably govern complexity with ecological governance. “A new
model of corporate governance” is created providing benefits to all stakeholders as wanted by US
CEOs. This would promote global common goods including countering climate change
| 2 |
Author(s):
Sunaina Kanojia, Neha Sharma, Simmar Preet, Poonam Sethi, Jai Prakash Sharma.
Page No : 31-62
|
CORPORATE POLITICAL FUNDING AND MANAGEMENTS’ PERCEPTION: EVIDENCE FROM INDIA
Abstract
The present study aims to ascertain the factors which can impact the corporate political funding
(CPF) decisions. It examines the perceptions of key managerial personnel (top management) about
CPF gathered through a structured questionnaire. The focus of the study is to find out the
antecedents to corporate political funding and analyse the perception of the top management
which impacts CPF decisions. The study analyses the perception of the top management board of
directors who make the decisions in the context of political funding using a structured
questionnaire. Using Independent T-test, One-way Anova and OLS, the study attempts to explore
various factors which impact managements' decision related to corporate political funding and
indicate the most prominent amongst them. The study provides evidence towards motive behind
the funding is the main antecedent to CPF decisions. For sufficient and transparent corporate
funding in India, a balance is needed between public and private funding with transparent and
precise criteria defining ceiling caps, disclosure and audit norms for enabling state contribution
and private donations, which is absent as of now. The results from this study provide evidence that
sectors which depend on Government policies or usage of restricted natural resources spend more
on CPF. Companies from the sector of refinery, mineral and natural resources, real estate,
followed by the manufacturing sector in India has emerged as the dominant Sector providing
corporate political funding.It highlights that public funding should be encouraged to give all
candidates a level playing field and reduce the influence of money in politics to reduce crony
capitalism. It indicates the way forward in improving CPF related practices leading to a better
governance environment.
| 3 |
Author(s):
Dr. Jyoti Paul, Dr. Deepti Singh.
Page No : 63-78
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DOES CSR COMMITTEE COMPOSITION AFFECT CSR DISCLOSURE: A STUDY OF INDIAN COMPANIES
Abstract
The concept of social responsibility of business is not new to the Indian Business though the term
found its usage more evidently in the last few decades. So much so, India passed legislation in
2013, making CSR expenditure mandatory for profit making business houses. A few years down
the line, it is time to study the how the corporate houses are shaping their CSR activities. The
Indian Companies Act has specified a list of activities in Schedule VII which are the broad areas
in which companies can have CSR projects. Based on mandatory parameters and review of extent
literature, the paper seeks to develop an index of CSR disclosure and tries to find out the extent of
compliance by BSE-30 companies. It further identifies the role of some key parameters of CSR
committee in terms of diversity, size, independence and activity and their relationship with CSR
disclosure by the firms. Size of the CSR committee and independent chairman are positively
associated with CSR disclosure index, whereas presence of females in CSR committee has a
negative relation with the index. Frequency of CSR committee meetings and ethnic diversity
measured by presence of foreign nationals on committee have no significant relation with CSR
index.
| 4 |
Author(s):
Shweta Jain.
Page No : 79-93
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EMPIRICAL EVIDENCE OF BOARD STRUCTURE, BOARD SIZE AND PERFORMANCE OF INDIAN LISTED COMPANIES
Abstract
Board structure and board diversity are an important internal governance mechanisms. The
present study involves the investigation of the association between the quality of a firm’s corporate
governance practices and its performance measured in terms of Tobin’s Q by constructing a firmspecific board structure index and board diversity index for Indian listed companies. Relationship
between board size and financial performance has also been examined in this study. Analysis has
been carried out by applying regression analysis between different board characteristics and
financial performance parameters. Evidences obtained from the empirical analysis indicate strong
positive relationship between board structure index and corporate financial performance
concluding that better governed companies are always valued higher and they shows a better
financial performance in the long run. Results also exhibit a positive and significant relationship
between board size and board diversity index and Tobin’s Q (proxy for company performance)
suggesting that investors reward the companies having a diverse and larger board.
| 5 |
Author(s):
Supriya Kamna.
Page No : 94-112
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PREDICTION OF MANAGERIAL FRAUD IN PUNJAB NATIONAL BANK
Abstract
The Indian banking industry has seen various governance scams in the recent years. In the last 3 years,
there has been a loss of thousands of crores due to various scams. This paper pertains to the managerial
fraud which happened in Punjab National Bank in 2018. This paper also aims to find out the predictive
ability of financial and corporate governance variables to detect fraud so that such fraud doesn’t happen
in the future. In this paper we found out that it is not easy to predict the managerial fraud in the case of
Punjab National bank with the help of financial and governance variables seeing together as the success
rate is around half. Also, individually financial variables proved to be better indicator of managerial fraud
as compared to Governance variables as seen in the case of Punjab National Bank Scam. Need of the hour
is to have a better and more stringent monitoring policy so as to avoid such frauds or scams in future.
