The book provides an outline of corporate governance systems across the world and specific corporate governance issues in emerging markets like in India. It covers functioning of corporate governance mechanisms in general and relates them specifically to CG in India along with a commentary on their effectiveness. By providing an overview of the Bombay Stock Exchange which represents the Indian capital market, it provides an understanding of the Indian capital market and its regulatory environment.
| |||||||||||||||
Book Description
Product Details
Would you like to update product info or give feedback on images?
|
More About the Author
Discover books, learn about writers, read author blogs, and more.
Customer Reviews
|
Share your thoughts with other customers:
|
||||||||||||||||||||||
|
Most Helpful Customer Reviews
4.0 out of 5 stars
Low capitalization is less governance,
By
This review is from: Stock Market Capitalization and Corporate Governance in India (Hardcover)
What the BSE SENSEX (30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange.)does not reveal is what Dr Som has tried to convey through her very well researched book. After a rigorous analysis of 4000 low cap companies listed on the BSE, she finds that erosion of investor wealth and illiquidity are the major outcomes of the holding patters of these companies. She is of the view that low cap companies are characterized by "a large number of inter-corporate holdings and group affiliation... where a plethora of firms structure themselves into business groups but retain their own identity for tax purposes." With domestic promoters holding 47 percent of the company, retail investors have hardly any say in the governance and functioning of the company, the exception being the IT industry where retail owners are the largest group. She highlights with a more in depth study of 34 firms that often high returns from some projects can be retained by the inside shareholders at the cost of the minority retail group. The paradoxical situation characterized by presence of large numbers of low cap companies and the absence of any significant market for corporate control is a result of information asymmetry according to the author.
A realistic view of the state of corporate governance in relation to the market capitalizations leads her to conclude that much needed change in the corporate governance will be ushered in by an increase in competition; the entry of firms managed by relatively young, modern, outward oriented entrepreneurs; change in the mindset from appropriating larger slices of a small pie to letting the pie grow, even at the cost of dilution of share ownership; impact of FIIs; the likely entry of foreign pension funds; the press and the financial analysts; and the need to access foreign markets." She puts risk management of bank credit high on the financial sector reform agenda for the country. To monitor the low cap companies the author suggests that an index on the lines of Novo Mercado created in 2000 by Bovespa, the Sao Paulo Stock Exchange in Brazil may be created.
Share your thoughts with other customers: Create your own review
|
|
Tag this product(What's this?)Think of a tag as a keyword or label you consider is strongly related to this product.
Tags will help all customers organize and find favorite items. |
Sell a Digital Version of This Book in the Kindle Store
If you are a publisher or author and hold the digital rights to a book, you can sell a digital version of it in our Kindle Store.
Learn more
