An empirical study of indian family-owned listed companies to investigate the moderating effect of corporate governance practices on the association between financial constraints and firm performance

This study was to investigate the impact of different financial constraints on the financial performance of family-owned listed companies in India. It also looked at how, in the chosen organisations, corporate governance practices moderate the relationship between financial limitations and company performance. The financial reports from 38 family-owned corporates listed in the BSE 200 index throughout a ten-year period (2013–2022) served as the secondary data source for this study. Regression analysis with moderation was used to analyse the data. The outcome showed that intrinsic financial restrictions substantially impair the chosen firms’ financial performance. An analysis of the moderating impacts of corporate governance (CG) practices revealed that financial constraints had a less detrimental influence on the financial performance of businesses with better CG practices. This was mostly due to the board’s growing involvement in financial decisions during times of restriction and also because of strict compliance in terms of audit function.