|
Corporate
Governance, Intellectual Capital and Value Creation
--
Maurizio La Rocca, Tiziana La Rocca and Alfio Cariola
This
paper makes an attempt to integrate, using a heterodox approach,
the capabilities perspective that raises the role of the manager's
competences and the incomplete contract perspective that raises
the role of agency problems, to describe how the Corporate
Governance (CG) relationships work in highly competitive and
complex environments. It provides a redefinition and reassessment
of CG theoretical models according to the changing nature
of the firm. This paper tries to describe the CG relationships
through the interaction between authority, as the most valuable
source of incentive for the manager for firm-specific investment,
and responsibility, as a mechanism to avoid opportunistic
behaviors. The interaction between them allows managers to
solve hold-up problems before and after moral hazard problems.
These two factors balance the incentive problem with the need
of a constraint on the manager's activities and explain the
way to encourage innovation and managerial creativity so as
to achieve success for the firm and support the value creation
processes.
©
2008 IUP . All Rights Reserved.
Corporate
Governance in India: A Survey of the Literature
-- S Subramanian and S Swaminathan
The
academic research in the field of corporate governance has
grown tremendously since Shleifer and Vishny (1997) published
their path-breaking survey of literature on corporate governance.
In India also, a good amount of research has been done. In
this paper the literature on corporate governance in the Indian
context has been reviewed. The research works of the corporate
governance in the Indian context is classified into five categories,
namely, corporate governance systems in India; ownership/capital
structure and corporate governance; institutional investors
and corporate governance; board characteristics and firm performance;
and executive compensation. It is found that the researchers
have consensus in answering certain issues such as the Indian
corporate governance model moving towards the Anglo-American
model. But there are many research issues like the effect
of board size on the performance of the firm where they disagree.
It is also observed that there are still plenty of research
gaps available in the field of corporate governance in the
Indian context.
©
2008 IUP . All Rights Reserved.
Corporate
Governance Standards and Practices in Reliance Industries
Limited
-- S C Das
In
the light of corporate governance standards envisaged by the
recent amendments to the Companies Act, 1956, and the provisions
of Sebi's revised Clause 49 of the Listing Agreement, this
case study evaluates the quality of corporate governance standards
and present practices in the textile, synthetics and petrochemical
industry in India, based on the annual report of Reliance
Industries Limited (RIL), a major Indian corporate house for
the financial year 2006-2007. The study is expected to serve
as a pointer to the effectiveness of current corporate governance
practice in RIL, in particular, and the Indian corporate sector,
in general.
©
2008 IUP . All Rights Reserved.
CASE
STUDY
Corporate
Governance in Indian Banking Industry: An Experience with
SBI and HDFC Bank
--
D P Samantaray and Swagatika Panda
The
role of Corporate Governance (CG) has become an essential
part of the corporate disclosure practice of any successful
organization. The most accepted corporate mantra today is
that the better the CG practice of an organization the better
the shareholder and stakeholder value creation. The same is
also applicable to the emerging financial sector of the country,
particularly the banking industry. The entry of new private
and foreign bankers has made the industry more competitive;
at the same time, the role of CG has become more important
from the point of view of protection of the stakeholder interest.
In this paper an attempt is made to make a detailed comparative
study of the CG practice of two leading banks based on their
annual report for the financial year 2006-07. The banks under
study were The State Bank of India (SBI) and The HDFC Bank
Ltd., the former is a leading public sector bank whereas the
latter one is a leading private bank. The study is based on
the report of CG given by the Narayana Murthy Committee on
CG.
©
2008 IUP . All Rights Reserved.
| 
