Econometric Essays In Corporate Governance

This book is a unique attempt to understand the role of corporate governance (CG) in determining the corporate performance in India on a long-term basis in BSE500 market. The combined ownership concentration of discrete minority segments was seen to be influencing top categories, and supported debt as a CG strategy. The current study observed that, CG performance lead to an overall reduction in weighted average cost of capital. It was found that companies with highest risk had the extreme ends of the CG scale and most of the risk-free companies had the middle segment of the CG scale. Overall, corporate governance performance index (CGPI) was interpreted by this study to have a role in productivity. An increase in CGPI suggested an increase in economic value added and it was inferred that CGPI influenced the firm’s performance. An increase in market value added was observed on the extreme ends of the CGPI scale, suggesting the possibilities of CGPI generating returns on performance and on positive expectations. The cumulative value premium was more than the growth premium and thus displayed a potential for wealth generation. Thus, the present study concludes that CG performance has a major role in determining the corporate performance dimensions. About the Author Dr.Sajit Jacob completed his Master of Management Sciences from School of Applicable Mathematics, Mahatma Gandhi University and proceeded to School of Economics and Finance, The University of Durham, United Kingdom for his MSc in Finance and then subsequently completed his MPhil in Finance. He completed PhD from Bharathiar University. Jacob is trained in Advanced Quantitative Management Techniques at Indian Statistical Institute and is passionate about the use of modern Machine Learning and Deep Learning analytical techniques alongside classical econometrics and operations research to enhance Finance and Economics research methods.