Corporate Governance And Financial Performance In India's Steel Manufacturing Sector: A Conundrum Of Influence

Abstract

Corporate governance may be defined as a collection of policies, rules, and laws that a company uses to direct and regulate its operations. Over the course of the last decade, the primary focus of academic investigation has been on establishing a correlation between good corporate governance (CG) and strong financial success. In the past, a large number of investigations on this connection were carried out. Although no conclusive evidence has been discovered to support this, according to the knowledge of the researcher, the findings of recent studies have produced contradictory conclusions. Furthermore, the researcher is aware of no research having been conducted in the past, particularly on the influence of CG activities on the financial performance of India's steel manufacturing sector. The researcher uses a sample of the top 20 firms on the National Stock Exchange (NSE) based on total assets in order to explore the effect of CG corporate governance initiatives on the economic performance of steel manufacturing companies in India. The NSE companies are ranked from highest to lowest in terms of total assets. In order to investigate the nature of this connection, a number of statistical analyses, including the correlation, t-test, regression, and F-test, have been carried out using secondary data. We came to the conclusion that governance ratings have both a positive and considerable influence on the financial success of businesses. When making use of the results, it is important to remember that the present study, like any other study, has certain limitations that need to be taken into consideration. It is important that future research make an attempt to break free from these constraints.