Corporate Governance Case Study

3039 Words13 Pages
Corporate Governance Practices for Nonbanking Financial Corporation’s (NBFCs)

1Ms. Lovely Srivastava (Corresponding Author), 2Dr. Ravindra Tripathi, 3Dr. Ambalika Sinha & 4Ms. Geetu Yadav
1& 4Research Scholar (UGC-JRF), Department of Humanities & Social Sciences, MNNIT, Allahabad lovely.mnnit@gmail.com,
2Assistant Professor, Department of Humanities & Social Sciences, MNNIT, Allahabad ravindra@mnnit.ac.in
3Associate Professor, Department of Humanities & Social Sciences, MNNIT, Allahabad ambalika@mnnit.ac.in

Abstract
Corporate Governance is very essential for smooth running of the business. It develops business ethics and standards. This is implemented on all the business operating in and across the country. SEBI has issued guideline for
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Corporate Governance is all about promises made by management to operate fair business, maintain transparency in their business conduct. It helps to construct a difference between own and corporate resources of the business. Ethical dilemmas come up from contradictory interests of the concerned parties involve in the business. On operating under the supervision of corporate governance decision makers are bound to take decisions under boundaries of these set of principles which is influenced by the standards, framework and customs of the organization. Ethical management is good for business as stakeholders expect from organization to perform the business to accomplish their expectations.
2. Objectives of Corporate Governance
Corporate Governance aims to make sure that the management of the company operates in transparent way for attaining long-term worth of the company for its shareholders and all other allies. It associates all the parties involved in a practice, which is financially and socially viable.
“Fundamental objective of corporate governance is the ‘enhancement of the long-term shareholder value while at the same time protecting the interests of other stakeholders.” ( Shri Kumar Mangalam
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The Corporate Governance implemented on financial Institutions will have impact on the health of financial system. This governance policy have greater impact on the profitability ratios, dividends paid, market capitalization, earnings per share, net worth, and book value of the shares of the business. The foreign banks and other financial institution are taking interest to spread out their business operations in India. They are moving strategically in India through join collaborations, joint ventures, tie ups, correspondent relations etc with the Indian financial entities. This is the reflection of reliability on established governance policies and legal
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