Author:Â R S Ramesh
Abstract: Corporate governance is the new buzz-word in the SME sector. It is viewed as a moral duty. It involves promoting the compliance of the existing laws and demonstrating ethical conduct. The relationship between corporate governance and financial performance has caught attention in the last decade. Numerous researches have been conducted to investigate this linkage, but there has been a lack of conclusive evidence. The results obtained from existing researches have been mixed. In this study, an attempt has been made to investigate the impact of corporate governance on the financial performance of selected SMEs in Bangalore, using a sample of 32 SMEs. Various tests like – regression, correlation, t-test and F-test have been carried out using secondary data over a period of two years from 2014-16 to study this linkage keeping the size of SME as controlled variable. It is found that governance ratings have positive and significant impact on financial performance of sample SMEs.
Full Issue
| View or download the full issue |