© 2021. Dr. Hema Doreswamy, Dr. Madhavi Lokhande, Prof. Radhika Uttam & Ms Debasmita Lenka. This is a research/review
paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creative
commons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the
original work is properly cited.
The Effect of Corporate Governance Practice on Firms’ Profitability
By Dr. Hema Doreswamy, Dr. Madhavi Lokhande, Prof. Radhika Uttam
& Ms Debasmita Lenka
Welingkar Institute of Management
Abstract- Corporate Governance has been framed in organization which basically define
relationship between board members, management team and shareholders, to carry out duties
at utmost transparency, ethical and accountability. It is always expected that the corporate
governance should meet the global standard for better corporate success. Therefore, it is very
necessary to have good corporate governance in order to manage effectively in global market.
Companies put in lot of effort to build and adopt a good corporate governance model in order to
catch the eye of investors. A good corporate governance practice can help companies perform
better than competitors and so does it impact on profitability. This research paper focuses on
finding the impact on corporate governance practices on profitability of firms. Here statistical
methods like descriptive statistics and Pearson correlation methodology are used to find the
direct link. Independent variables are board committee, board size, CEO duality, audit
committee, non-executive director and dependent variables are PAT, EPS, ROA.
Keywords: ethical, corporate success, profitability.
GJMBR-C Classification: JEL Code: F65
TheEffectofCorporateGovernancePracticeonFirmsProfitability
Strictly as per the compliance and regulations of:
Global Journal of Management and Business Research: C
Finance
Volume 21 Issue 3 Version 1.0 Year 2021
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals
Online ISSN: 2249-4588 & Print ISSN: 0975-5853