Corporate Governance class 10

1. Institutional
investors

2. Types of institutional investors in
India
1. Development oriented financial
institutions . ICICI IDBI etc
2. All insurance companies. LIC, GIC etc
3. All banks.
4. All mutual fund organisations. UTI mutual
fund etc

3. Factors influencing investor
decisions
1. Financial results and solvency
2. Financial statements and solvency –extent of
disclosure-comparability with international
GAAP
3. Investor communications
4. Composition and quality of the board
5. Corporate governance practices
6. Corporate image
7. Share price

4. Institutional governance and
development
 Development in an organisation can be
brought through two major forces.
 Rule of law
 Equity-
 a. participation b.accountabilty
c.transperancy d.responsiveness

5. Connection diagram for development through
governance
• Responsivesness
• DEVELOPME
NT
• participation
Rule of
law Equity
accou
ntabilit
y
transp
erancy

6. Corporate governance and
growth of an enterprise
Affects of elements on growth of a firm.
1. Increased access to finance
2. Higher firm valuation
3. Better operational performance
4. Reduced financial risks
5. Better relations with stakeholders