CORPORATE GOVERNANCE DISCLOSURE PRACTICES AND FIRM’S FINANCIAL PERFORMANCE

Abstract

The present study investigates the relationship between corporate governance and the overall financial
performance in the emerging Indian context. The relevance of corporate governance increased in the
liberalized economic environment due to the integration of countries into the world market. Fast Moving
Consumer Goods (FMCG) sector is India’s fourth largest industry, contributing almost 20 percent to
Gross Domestic Product (GDP). The study is to evaluate the influence of corporate governance in the
overall financial performance of the selected organizations in the FMCG sector. Corporate Governance
Disclosure Index (CGDI), used for identifying the corporate governance compliance status and panel
data technique is used to investigate the extent of influence by corporate governance on the financial
performance.