Corporate Governance and its Effect on Financial Performance of Cement Companies in India

Abstract

In today's business environment, corporate governance has become a popular idea and is frequently seen as a moral requirement. It places a strong emphasis on acting morally and abiding by the text and spirit of the law. The connection between corporate governance and financial performance has garnered a lot of attention from scholars in the last ten years. Despite the fact that a great deal of research has been done to investigate this relationship, the conclusions are still conflicting. This study uses a sample of 20 cement companies to investigate how corporate governance affects financial performance in the Indian environment. Several statistical tests, including regression were used to examine this association using secondary data spanning the two-year period from FY 2023–2024 to FY 2024–2025. The analysis also took firm size into account. The findings show that business financial performance is positively and significantly impacted by governance ratings.