CORPORATE GOVERNANCE PRACTICES LEADS TO VALUE ENHANCEMENT OF STAKEHOLDERS OF LISTED COMPANIES IN TAMIL NADU

Abstract

The study has made an attempt on the Corporate Governance practices of listed companies in the respective study area. It mainly focuses on the CG and rests upon four pillars, viz., Transparency, Full disclosure, Independent monitoring and being fair to all, especially to minority shareholders. Corporate Governance refers to myriad mechanisms that shape the structure of incentives, disincentives, and prohibitions, under which an issuer's management makes decisions. In a modern corporation operating in a globalised world, concepts of disclosure and corporate governance are intertwined. Disclosure mechanism can be associated with the broader view of corporate governance that is not just restricted to shareholders, but also the aggregate of institutional and organizational factors that influence large decisions of public companies because public companies generates capital from various constituents. Corporate governance is an area that secures how efficiently manages corporations by the use of incentive mechanism, such as contracts, organizations and legislations. Transparency, corporate fairness and accountability are the important pillars of corporate governance. It is known for formally establishing guidelines regarding how a company is going to function. Enhanced and revised corporate governance policies are required in order to reduce the effect of financial crisis. International investors also invest in companies who follow good governance principles. From the international point of view they are the basic building blocks of the market. The researcher has used both Primary data and Secondary data methods of data collection. Simple random sampling method has been adopted for the study. The statistical tools like percentage analysis, chi-Square test, ANOVA and t-Test has been used for the study. The study highlights that 60 per cent of the companies are organizing programmes/talks/training for Independent Directors in matters relating to Corporate Governance. It is found that 100 per cent of the listed companies i.e. all the listed companies have disclosed to the shareholders in the annual report in relation to financial calendar. The basis of non-mandatory provisions and suggested items are to be included in the corporate governance. It can be concluded that listed companies are following only forced regulation and are not showing much interest in the voluntary compliance of rules and regulations.