Article Details
  • Published Online:
    April  2025
  • Product Name:
    The IUP Journal of Corporate Governance
  • Product Type:
    Article
  • Product Code:
    IJCG070425
  • DOI:
    10.71329/IUPJCG/2025.24.2.108-120
  • Author Name:
    Khajabee Pathan and Madhusmita Mohanty
  • Availability:
    YES
  • Subject/Domain:
    Management
  • Download Format:
    PDF
  • Pages:
    108-120
Volume 24, Issue 2, April 2025
MSMEs, Andhra Pradesh, Economic development, Investment growth, Governance, Employment generation
Abstract

The study examines the indirect relationship between corporate governance and firm value using profitability measures, ROE and ROCE, as mediating factors. The study utilizes the annual data of 143 publicly-listed Indian enterprises from various sectors, spanning 2019-2023, using panel PMG-ARDL model. For mediation, Sobel test was conducted. The findings show no mediating relationship between corporate governance performance and firm value through ROE and ROCE, Additionally, corporate governance performance has a significant long-term impact on the firm value. The study’s findings have policy implications for corporate management, shareholders, and governing bodies.

Introduction

The buzzword “environmental, social, and governance (ESG)” refers to enterprises’ and stakeholders’ responsibilities to actively promote environmental preservation by implementing measures such as energy reduction, waste minimization, and recycling.