A NEXUS BETWEEN CORPORATE GOVERNANCE CAPITAL CATEGORY AND FIRM POTENCY

The investigation revolves around the corporate governance system in India. The study is based on 363 companies registered on Bombay Stock Exchange (BSE) on the grounds of their capital category i.e small cap, mid cap and large cap for the period of 2013 to 2019. The study aims at revealing the nexus between corporate governance, capital category and firm potency. The scientific and objective tools and techniques revealed the nature of relationship and the degree of dependence between the variables under investigation which includes ANOVA and multiple comparison within and between groups using Tamhane T2 Post hoc test. Corporate governance is measured using standard scorecard based on Standards & Poor's GAMMA scorecard for significant corporate governance components suggested by Organisation for Economic, Cooperation & Development OECD. Financial potency of the companies is assessed using standard accounting based financial parameter which includes Return on Equity (ROE), Return on Capital Employed (ROCE), Return on Assets (ROA),Total Assets (TA), Profit After Tax (PAT), Inventory Rate (IR), Financial Leverage (LEV) and Current Ratio (COR). With the study outcomes it is clearly evident that the capital category affects the firms's performance. It was also observed that the corporate governance policies and practices of the large cap firms are better than mid cap and small cap firms in India.