Authors :
Raj Kamal Prajapati; Dr. K. K. Misra
Volume/Issue :
Volume 7 - 2022, Issue 10 - October
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3Ny9rnX
DOI :
https://doi.org/10.5281/zenodo.7263780
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.
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.
