Small Scale Industries and Factors Affecting their Performance in Indian Context: A Literature Review

Purpose : The rise in corporate scandals led to the introduction of mandatory corporate governance norms across the world economies. There are arguments regarding compliance to governance norms in rms. Since corporate governance is a monitoring and control mechanism, would such monitoring and control intervene in management discretion and hurt the rm value? On the other hand, corporate governance is also understood to build investor condence and that reduces the cost of capital for a rm. Such opposing arguments have been examined by researchers by studying the impact of internal corporate governance mechanisms on rm value. In light of the above argument and due to mixed results in the literature, the purpose of this study is to examine the impact of internal corporate governance mechanisms on nancial performance of rms listed on NSE of India.