Authors:
S. Baneet, M. Soundarya, P. Surenthran David, D. Joel Jebadurai

Addresses:
Department of Business Administration, SRM TRP Engineering College, Tiruchirappalli, Tamil Nadu, India. School of Management Studies, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India. Faculty of Finance and Marketing, Xavier Institute of Management and Entrepreneurship, Chennai, Tamil Nadu, India. Department of Management Studies, St. Joseph’s College of Engineering, Chennai, Tamil Nadu, India.

Abstract:

This study examines the relationship between corporate governance practices and company performance, emphasizing sustainability in Indian firms by evaluating governance parameters and their influence on firm value and sustainability. A quantitative methodology was employed, utilizing secondary data from 171 firms across six sectors. Multiple regression analysis is used to assess the relationships among several governance characteristics and performance metrics, including Tobin’s Q, return on assets, and market capitalization. The findings show that certain governance practices, such as the frequency of board meetings and managerial and foreign ownership, yield positive results. However, a lack of gender diversity and high levels of corporate social responsibility have an unfavorable impact on performance. This study relies on secondary data, which may not accurately represent real-time changes in governance. It underscores the necessity for appropriate governance models tailored to each industry to improve organizational performance and promote sustainability. These study findings may aid policymakers and business leaders in aligning company practices with the objectives of the Sustainable Development Goals (SDGs), as governance has been demonstrated to foster wealth creation and benefit society. This study is one of the few that seeks to delineate the relationship between corporate governance and business performance in India, focusing on sector-specific variations and sustainability. It offers the reader practical measures to achieve this alignment.

Keywords: Corporate Governance; Firm Performance; Sustainability Practices; ESG Assets; Ownership Structure; Company Performance; Sustainable Development Goals.

Received on: 12/02/2025, Revised on: 05/05/2025, Accepted on: 10/08/2025, Published on: 09/05/2026

DOI: 10.69888/FTSML.2026.000653

FMDB Transactions on Sustainable Management Letters, 2026 Vol. 4 No. 2, Pages: 78-93

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