Research Article
SMEs in an Emerging Economy: Empirical Study on Corporate Governance Practices in SMEs Looking for Listing Option
@INPROCEEDINGS{10.4108/eai.18-12-2018.2283884, author={Pravin Kumar Bhoyar and Rajiv Divekar and Asha Nagendra}, title={SMEs in an Emerging Economy: Empirical Study on Corporate Governance Practices in SMEs Looking for Listing Option}, proceedings={Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India}, publisher={EAI}, proceedings_a={SIMSARC}, year={2019}, month={9}, keywords={smes corporate governance nfcg ‘to-be-listed’ companies}, doi={10.4108/eai.18-12-2018.2283884} }- Pravin Kumar Bhoyar
Rajiv Divekar
Asha Nagendra
Year: 2019
SMEs in an Emerging Economy: Empirical Study on Corporate Governance Practices in SMEs Looking for Listing Option
SIMSARC
EAI
DOI: 10.4108/eai.18-12-2018.2283884
Abstract
In 2003, Ministry of Corporate Affairs, Government of India, established National Foundation for Corporate Governance (NFCG) partnering with Confederation of Indian Industry (CII), Institute of Company Secretaries of India (ICSI) and Institute of Chartered Accountants of India (ICAI). In 2010, stakeholders in NFCG were expanded to include ICAI and National Stock Exchange. NFCG identified Symbiosis Institute of Management Studies (SIMS) as a partner institute to carry out projects pertaining to corporate governance. The objectives of this study were to understand the corporate governance practices of selected SMEs in Pune. Interviews were used to collect primary data. 16 companies which fulfilled corporate governance compliances were checked on selected parameters as:
• Private Equity Fund Association • Independent Directors • Board Meetings • Audit Committee • Transparency and Disclosures • Statutory Auditors • Investment Bank/Merchant banker Association • • Growth sustainability exercise • Succession Planning • Industry • CEO category • Professional CA CS association • Employee participation in Governance Investigators observed minimal material deviation in above parameters. The same rules governed both SMEs and large organizations for cost of borrowing, taxes, and IPR. There is a requirement to incentivize taxes for retention of earnings, subsidize employment and skills training, ease regulatory compliance for SMEs.