Strategic innovation in corporate governance research- an empirical interface

The research methodology adopted to carry out the impact study for a systematic and scientific investigation includes the explanation on every component related to research design and implementation effectively. An extensive literature review carried out to conceptualize the basic research framework and subsequently formulate hypotheses for empirical testing. This paper provides a comprehensive discussion on the research questions, objectives, scope, research framework, hypotheses, sampling plan, questionnaire design, questionnaire administration and quantitative analytical techniques used for the purpose of the impact study. The objective of this paper corroborates the research methodology adopted, wherein a description of the problem statement, objectives, hypothesis, research design and modus operandi of statistical tools and systematic approach followed to study the impact of corporate governance on corporate performance through the economic value added estimation in selected Indian corporates specifying empirical testing. To enable the study’s objective in regard to dissect impact of corporate governance on corporate performance by way of economic value added estimation, the strictures of the corporate governance are explored in light of the recent developments and amendments in the Indian legal context. Sample of companies reporting EVA surveyed by the BT-SS (Business Times-Stern Stewart) biggest wealth creators, are retrieved for the last 5 years qualify the study of impact of various facets of corporate governance by constructing a score (Corporate Governance Score) on the shareholder’s value creation resulted by way of EVA reporting. Hence it is imperative that developing governance models which get culturally attuned to the nature of economic activity in India shall at least make sense for the region’s market participants. This has led to the finding ways to prognostic approach apprehending the benefits of governance to increase the rate of embracing value creation. From the data collected and research methodology applied, empirical relationships between governance performance and corporate performance has been the central implication of the analysis, which shall lead to the level of complacency for Indian companies to find out how the better-governed companies in the region could out-perform their rivals. In the following sections, the various statistical analyses serve as a conduit to the governance regulators and the corporates to envision level of governance progress. This research thus investigates the endogenous relationship between corporate governance (by way of corporate governance score) and economic value added, being the value based corporate performance metric, of the selected listed companies in India.