Determinants of Governance Parameters Towards Investor’s Performance in Perspective of Regulatory and Legal Framework

Jiban Kumar Parida and Vishal Vyas

Global Business Review, 2022, vol. 23, issue 4, 1007-1030

Abstract: The study aims to extract the main determinants of governance index in relation to regulatory and legal framework, which influence the performance of investors in larger way. The driver of governance factors has been studied and tested empirically by using factor analysis method (Exploratory Factor Analysis). To achieve this, Quantitative data have been collected by distributing questionnaire to a suitable sample size of 317 respondents who have at least 3 years of investment experience in Indian stock market and data collection period was over last 6 month of 2017. For preparing the questionnaire, the study considers the corporate governance index scale by Standard & Poor’s agency which was worldwide accepted. The study provides a useful direction to retail investors, investment professionals/planners and companies regarding the knowledge about governance-related factors that are specific to the causal effect between mentioned governance construct and market returns. Further it implies that good governance system helps investors during their investment decision-making process particularly in emerging markets for getting higher return, money protection and deterrence from fraudulent market activities.

Keywords: Governance index; factor analysis; stock market; investment (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:23:y:2022:i:4:p:1007-1030

DOI: 10.1177/0972150919875378

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