Corporate Governance and Firm Performance in India: Post - Satyam the Way Ahead: What Needs to Be Done?

Abstract

Corporate governance has been a topic of hot debate in developed countries like U.K. & U.S.A. for the last two decades. Witf1 the opening up of economies, it has also been a concern for developing countries like India. This is because opening up of economies has changed the scenario of Indian market i.e. on the one hand, it has made the world market accessible to the Indian corporates and on the other hand, with the advent of the multinational companies it has increased competition in the domestic market. In this changed scenario, the quality of governance has been an important factor not only for survival of the companies b11t also for influencing the company's ability to raise money from capital market. Again corporate governance is important in Indian context because of the scams that have occurred since liberalisation in 1991,for e.g. the UT! scam, Ketan Parekh scam, Harshad Mehta scam, & the latest Satyam Fraud case. In this paper, we will look into the historical background o f corporate governance in India, recent developments in corporate governance in India till date, issues related with corporate governance in In d ia. We will also look into the latest and the biggest scam that has occurred with respect to corporate governance i.e. The Satyam Fraud Case & will try to suggest some solutions so that such frauds do not occur in the near future