Do corporate governance practices differ across different market capitalization of the firms: Some empirical findings from India?

Abstract

Worldwide considerable amount of research on corporate governance focuses on ownership structure and board characteristics of companies and linking these to their performance but fewer studies have been found on the linkage between market capitalization of the firms and the quality of corporate governance practices. This study is an attempt to showcase the linkage between market capitalization and quality of corporate governance practices of the firm. The purpose of this paper is to study the impact of firms with different market capitalization on the quality of corporate governance in Indian companies. As India is one of such countries where corporate governance systems are in the evolutionary stage, the findings could also be useful for other newly liberalized and globalizing economies.