Firm signaling using corporate governance

Abstract

The researcher has looked at the leading national and international best practices guidelines for arriving at the factors, which are used in the corporate governance assessment model. These include the 1. OECD report Investment, by Organisation for Economic Co-operation and Development 2. Corporate governance principles and recommendations, May 2000, by European association of security dealers 3. Statement of global corporate governance principles, International corporate governance network 4. Cadbury report on corporate governance 5. The code of corporate practices and conduct by King 6. Corporate Governance: A Guide for Investment Managers and Corporations, IFSA 7. Building governance culture, Chartered accountants of Canada 8. Guidelines for improved corporate governance, Dey 9. Kumaramangalam Birla committee The Central theme of the model is the need for companies to have appropriate levels of independence on the Board of Directors and their associated committees. This model considers objective factors based on publicly disclosed information of the existence and structure of a company's Board of Directors, audit committee, remuneration committee, and nomination committee.