TARU PUBLICATIONS
Journal of Information and Optimization Sciences cover
Hybrid ·Peer-reviewed·ISSN (Online): 2169-0103·ISSN (Print): 0252-2667

WoS  JIF 2026 : 0.4 (Q4)

Powered by:Powered by

Monthly Journal: Publishes theoretical and applied research on topics in information and optimization sciences.

Issues up to 2022 co-published with and available at:Taylor & Francis
submissions@tarupublications.com
Open Access Research Article

A study on financial performance of Nifty 50 Indian companies with strong corporate governance

* , ,

* Corresponding author · click or hover a name for details

pp. 2403–2412Vol. 46Issue 8November 2025DOI: 10.47974/JIOS-2055XML
Received:
04 Feb 2025
Published Online:
29 Nov 2025
Article type:
Research Article
Language:
EN
Article no.:
JIOS-2055
Pages:
2403–2412

Abstract

The research investigates how management independence and size i.e., board independence and board size affect the financial success of Indian firms by examining Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin. This study quantitatively analyzed data from 2018-2022, encompassing a diverse range of Indian public companies and sectors. Studies indicate that a higher proportion of independent directors on company boards correlates with enhanced asset utilization and subsequently stronger ROA. More board members mean lower profits due to extra work and higher agency costs. Board independence and size don’t really affect ROE or profit margins. To improve their financial standing, Indian companies must strengthen their boards and optimize asset utilization.

Keywords

Subject Classifications

62P2062P2591B84P1G50

References

[1] F. Charão and O. Oliveira, “Overview of BRICS countries’ initiatives on best corporate governance practices,” Developments in Interdisciplinary Research and Practices (2023). doi: 10.56238/devopinterscie-028.
[2] A. Dash and S. Mohanty, “The mediating effect of a firm’s corporate reputation and sustainability practices in translating CSR into competitive performance in Indian ESG companies,” Society and Business Review, vol. 18, no. 4, pp. 691–709 (2023). doi: 10.1108/sbr-02-2023-0045.
[3] B. Fernandes and M. Dias, “Hidden politics? An empirical study on factors influencing business lobbying in Brazil,” American Journal of Industrial and Business Management, vol. 14, no. 4, pp. 440–461 (2024). doi: 10.4236/ajibm.2024.144023.
[4] A. Grossman, N. Sahyoun, and I. Twardus, “‘Et tu, bruté?’: Do audit committees besmirch investors’ desire for increased disclosures?” Journal of Corporate Accounting & Finance, vol. 35, no. 2, pp. 385–403 (2024). doi: 10.1002/jcaf.22692.
[5] I. Gulzar and S. Haque, “The implications of corporate governance on the working capital efficiency of manufacturing companies: Evidence from emerging market,” Jindal Journal of Business Research, vol. 12, no. 2, pp. 160–173 (2023). doi: 10.1177/22786821231166789.
[6] Z. Hameed and K. Renganathan, “Papel dos intermediários de investimento institucional no controle corporativo: Uma análise crítica,” Revista de Gestão Social e Ambiental, vol. 18, no. 2, p. e04862 (2024). doi: 10.24857/rgsa.v18n2-059.
[7] A. Hardana, L. Hasibuan, and S. Hasibuan, “Tax aggressiveness, capital structure, corporate governance dan firm performance,” International Journal of Economics, Research and Finance Applications (IJERFA), vol. 1, no. 2 (2023). doi: 10.55227/ijerfa.v1i2.28.
[8] H. Helmi, M. Adam, and A. Amri, “The influence of organizational culture and internal control on corporate performance mediated by corporate governance in PT Medco E&P Malaka,” International Journal of Scientific and Management Research, vol. 6, no. 3, pp. 71–81 (2023). doi: 10.37502/ijsmr.2023.6305.
[9] W. Idawati, S. Pranoto, and H. Prabowo, “Corporate governance mechanism towards earnings management: Does financial distress could make it better?” Research Journal of Finance and Accounting (RJFA), vol. 15, no. 2 (2024). doi: 10.7176/rjfa/15-2-06.
[10] G. Lisiantara, J. Jaeni, A. Nugroho, and P. Hardiningsih, “Corporate characteristics on firm values with moderation of good corporate governance,” Fokus Ekonomi Jurnal Ilmiah Ekonomi, vol. 18, no. 2, pp. 209–220 (2023). doi: 10.34152/fe.18.2.209-220.
[11] B. Khan and N. Khan, “Corporate governance paradigm: Private healthcare providers of Dubai,” JSMS, vol. 26, no. 3, pp. 401–417 (2023), doi: 10.47974/JSMS-1035.
[12] J. Oliveira, “Corporate governance mechanisms and financial performance: An analysis of listed companies in Brazil,” International Journal of Strategic Management (IJSM), vol. 3, no. 1, pp. 53–67 (2024). doi: 10.47604/ijsm.2483.
[13] J. Ooko, “Ownership structure, agency costs, board independence and corporate risk among firms listed at the Nairobi Securities Exchange, Kenya,” Asian Journal of Economics, Business and Accounting, vol. 24, no. 12, pp. 50–64 (2024). doi: 10.9734/ajeba/2024/v24i121591.
[14] T. Otto, “Corporate governance, agency costs, and financial performance: A systematic literature review,” International Journal of New Trends in Commerce and Justice (INTCJ), vol. 1, no. 1, pp. 1–15 (2024). doi: 10.69659/rynzhy09.
[15] M. Poojan, N. Parikh, K. Rao, and S. Patel, “A study on impact of corporate governance on financial performance of the selected IT companies in India,” Gap Interdisciplinarities - A Global Journal of Interdisciplinary Studies, vol. 6, no. 3, pp. 44–49 (2023). doi: 10.47968/gapin.630007.
[16] A. Pradhan, “Boardroom dynamics: Exploring the intersection of corporate governance and firm performance,” Journal of International Economics Research (JIER), vol. 4, no. 3 (2024). doi: 10.52783/jier.v4i3.1681.

Views: 177Downloads: 74Citations: 0