Published Online:July 2024
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:
Author Name:Suman Kolpula and Narender Miryala
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:11
The study explores the trends in corporate governance practices in listed Indian small and medium enterprises (SMEs). 70 SMEs were selected from BSE SME Platform based on availability of data for a period of 10 years, from 2010-11 to 2019-20. Corporate governance was measured based on board committees, board meetings, board size, board independence, CEO duality, corporate reporting and gender diversity practices. The required data was collected from CMIE prowess database. Mean, standard deviation and coefficient of variance were used to assess the corporate governance practices in Indian SMEs. Corporate governance score was computed and used to find the trends in corporate governance during the study period. It was found that the average score of corporate governance practices was steadily improving and standard deviation was gradually decreasing over the study period, and as a result, the coefficient of variation was also lower
There is no distinction between a large-scale entity and a small-scale entity with regard to corporate governance provisions. Corporate governance regularities are same for all listed companies, except for a few relaxations. To expand their business activities, large-scale companies may go for listing on a recognized stock exchange. For the convenience of small entities, both NSE and BSE started their platforms—NSE Emerge and BSE SME. Both these platforms are meant to list the stock of small and medium enterprises. This particular initiative encouraged small business entities to raise capital for their growth requirements. As a listed company, a small company also meets the stock exchange requirements on a regular basis, because every listed company has to meet the required provisions to ensure the interests of the investors and other stakeholders. By way of listing on a stock exchange, even a small company gets an opportunity to raise capital from the stock market. On the other hand, ensuring corporate governance practices involves some cost.