Fuzzy bundling of corporate governance practices and performance of Indian firms
ISSN: 1472-0701
Article publication date: 13 September 2021
Issue publication date: 21 February 2022
Abstract
Purpose
This paper aims to develop a framework that aids in achieving the desired state of financial performance for corporate enterprises based on distinct configurations of corporate governance (CG) practices.
Design/methodology/approach
This study uses a fuzzy-based system to arrive at a definitive configuration of CG practices that lead to a specific level of firm’s performance.
Findings
This analysis of the panel data of 92 National Stock Exchange–listed companies conducted for RONW on selected CG variables shows that eight fuzzy configurations lead to a particular state of RONW. The authors compare the results with the conventional regression-based scoring models.
Originality/value
Corporate enterprises can use the derived bundles of CG practices leading to a specific set of financial performance (RONW) to aid the decision-making process in defining and implementing their governance structures. The regulators can modify or customize the law-mandated CG practices to reduce redundancies and promote the national agenda of economic efficiency.
Keywords
Citation
Gupta, P.K. and Mittal, P. (2022), "Fuzzy bundling of corporate governance practices and performance of Indian firms", Corporate Governance, Vol. 22 No. 2, pp. 257-277. https://doi.org/10.1108/CG-12-2020-0546
Publisher
:Emerald Publishing Limited
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