Corporate governance stands for responsible business management geared towards long-term value creation. Good corporate governance is a key driver of sustainable corporate growth and long-term competitive advantage. It focuses on a company’s structure and processes to ensure fair, responsible, transparent and accountable corporate behavior. This study attempts to examine the impact of the nature of sector or industry on corporate governance and disclosure practices of firms by identifying and testing the empirical evidence for such relationship for firms listed on the Bombay Stock Exchange (BSE) in the form of S&P BSE sector indices. The sample firms represent different sectors, like auto, metal, oil and gas, consumer durables, capital goods, FMCG, healthcare, IT, and power. The findings reveal that no significant correlation exists between the industry type and the level of disclosure in the Indian context.

Corporate governance focuses on a company’s structure and processes to ensure fair, responsible, transparent and accountable corporate behavior. There are actually many definitions of corporate governance but they all concern the following:

• Systems of controls within the company;
  
• Relationships between the company’s board/shareholders/stakeholders;
  
• The company being managed in the interests of the stakeholders; and
  
• Greater transparency and accountability to enable users of corporate information to determine whether the business is being managed in a way that they consider appropriate.

Corporate governance is a priority for firms because it presents opportunities to manage risks and add value. The focus of corporate governance is shifting from mere obligation and compliance with laws and listing standards, to a business imperative for many firms. Corporate governance significantly influences the firm’s performance. It stands for responsible business management geared towards long-term value creation. Good corporate governance is a key driver of sustainable corporate growth and long-term competitive advantage (Madhani, 2007).

Corporate Governance Journal, Corporate Governance, Bombay Stock Exchange (BSE), Foreign Institutional Investors (FIIs), Organization for Economic Cooperation and Development (OECD), Asian Development Bank (ADB), Practices of Indian Firms, Industry Perspective, .