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CORPORATE GOVERNANCE AND ACCOUNTING STANDARDS IN INDIA:

AN EMPIRICAL STUDY ON PRACTICES

DR.K.SHANKARAIAH *

D.N. RAO**

RELEVANCE:

In recent years, the Indian economy has undergone a number of reforms, resulting in a more market-oriented economy. Particularly, after the Government of India has taken steps towards liberalization and globalization of the economy, the size of Indian corporates is becoming much bigger and accordingly the expectations of various stakeholders are also increasing, which can be satisfied only by the good Corporate Governance.

The importance of good Corporate Governance has also been increasingly recognized for improving the firm’s competitiveness, better corporate performance and better relationship with all stakeholders(1), because of which the Indian Corporates have obliged to reform their principles of Governance. For that purpose, Indian companies will now be required to make more and more elaborate disclosures than have been making hitherto, for which they are also required to adhere to the uniform and proper accounting standards, as the standards reduce discretion, discrepancy and improves the utility of the disclosure.

*Assistant Professor, Accounting Diploma, College of Commerce & Economics, Sultan Qaboos University, PB 20, PC 123, Al Khod, Muscat, Sultanate of Oman.

**Lecturer, Accounting Diploma, College of Commerce & Economics, Sultan Qaboos University, PB 20, PC 123, Al Khod, Muscat, Sultanate of Oman

1

Here, the Corporate Governance is a voluntary, ethical code of business concerned with the morals, ethics, values, parameters, conduct and behavior of the company and its management. The corporate responsibility begins with the directors who are the mind and soul of the organization. The Board is expected to act as conscience-keeper of the corporate vision and mission, and devise the right type of systems for organizational effectiveness and satisfaction of stakeholders. Thus, the Corporate Governance is a system of...