E-ISSN 2281-4612 ISSN 2281-3993 Academic Journal of Interdisciplinary Studies www.richtmann.org Vol 12 No 1 January 2023 151 . Research Article © 2023 Shireen Rosario and Chandra Sen Mazumdar. This is an open access article licensed under the Creative Commons Attribution-NonCommercial 4.0 International License (https://creativecommons.org/licenses/by-nc/4.0/) Received: 03 October 2022 / Accepted: 23 December 2022 / Published: 5 January 2023 Quality of Management and Its Influence on Market Valuation: A Study of the Indian Pharmaceutical Industry Shireen Rosario 1 Chandra Sen Mazumdar 2 1 PhD Scholar, MS Ramaiah University of Applied Sciences, Lecturer, College of Commerce & Business Administration, Dhofar University, PB 2509, Salalah 211, Oman 2 Assistant Professor, Department of Management Studies, MS Ramaiah University of Applied Sciences New BEL Road, Bengaluru, India DOI: https://doi.org/10.36941/ajis-2023-0013 Abstract This paper aims to highlight the relevance of the quality of management in the well-being of a firm and its influence on market valuation. The study which is based on the Indian Pharmaceutical Industry, measures and employs the quality of Management and directorship, together with the Return on Capital Employed (ROCE), to assess the influence on market valuation and the efficiency of assets employed. The study employs forty companies that are listed on the Bombay Stock Exchange, for a period of 12 years from the fiscal year 2008-09 to 2019-20. Through Path Analysis, it is established that ROCE, Quality of management, and Directorship in that order influence the market valuation which is represented by the Q ratio. ROCE & Dividends impact the efficiency of assets under use, which is represented by the Asset Turnover Ratio (ATO). Keywords: Management, Directors, Valuation, Market 1. Introduction Stewardship of a business organization is one of the key pre-requisites for its success. Research has established that companies that have high-quality and focused management who have consistently and judiciously allocated capital, kept low on leverage, have managed well their working capital and other parameters, have done better than others that have not focused on quality of management. Mukherjea et al (2021, 2018 ) and Mukherjea, 2016 clearly show that family-owned businesses that have handed over the core management to professionals, managements that have consistently generated free cash flow and employed the free cash flow so generated to expand, companies that have invested in technology to further their business, that has steadily advanced their competitive advantage, managements that have taken more variable pay, than fixed pay, depending on the performance – have succeeded much ahead of their competitors. For all these decisions, the quality of management and directorship that lead the company towards financial success is key. Chemmanur et al (2009) were the first ones to quantify the quality of management and examine the relationship