Publication Date: 2022/10/29
Abstract: Purpose of this paper is to examine the corporate governance practice in the pharmaceutical industry in India as per new norms of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. For this study, top 20 companies are selected as sample companies on the basis of market capitalization. Some norms are applicable from 01-04-2019 so data were collected from that effective date (01-04-2019) and only two financial years (2019-20 and 2020-21) were selected as time periods because of non-availability of other year data. Only secondary data were used for the purpose of this study and most of the data were collected through annual reports of selected companies. There are 159 items that are inserted to construct a corporate governance disclosure index which is grouped into 21 parameters and a dummy value is used to score if a particular item was followed by the company then score one is given otherwise zero. Equal and unequal method is used for the purpose of calculation of corporate governance disclosure score. Finding of the study shows that only three companies i.e. IPCA (91.19%), Cipla Company (82.70%), Laurus Lab (79.87%) are nearest to the maximum score and other companies are far away from the maximum score. Thus, there is a need to improve the level of disclosures of corporate governance so that domestic and abroad investor’s confidence may be maintained along with protection of interest of other stakeholders of the company.
Keywords: Corporate governance, SEBI (LODR) Regulations, 2015, Committee, Independent women directors.
DOI: https://doi.org/10.5281/zenodo.7263780
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT22OCT255_(1).pdf
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