IMPACT OF CORPORATE GOVERNANCE PRACTICES ON STOCK PERFORMANCE IN INDIA

Abstract

In emerging markets like India, where institutional frameworks, ownership structures, and market dynamics diverge from developed economies, corporate governance has emerged as a critical concern for investors, regulators, and scholars. The impact of corporate governance practices on Indian stock performance is investigated in this theoretical research paper. With a focus on how mechanisms like board structure, ownership concentration, disclosure standards, and regulatory oversight affect stock returns, risk-adjusted performance, and firm valuation, this paper offers a theoretical investigation of the relationship between corporate governance practices and stock performance in India. The study uses secondary data sources like scholarly journals, regulatory reports, corporate governance codes, and earlier empirical studies. The study examines the implications for investors, policymakers, and future empirical research after synthesising the theoretical literature to suggest a conceptual model that links governance practices to stock performance.