Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India

Research Article

Corporate Governance in Small and Medium Enterprises (SME) in India: Does Independent director make an impact on profits of SMEs?

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  • @INPROCEEDINGS{10.4108/eai.18-12-2018.2286374,
        author={Mita Mehta and Arti Chandani and Ankita Bhatia},
        title={Corporate Governance in Small and Medium Enterprises (SME) in India: Does Independent director make an impact on profits of SMEs?},
        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={corporate governance; sme; independent director; profit after tax},
        doi={10.4108/eai.18-12-2018.2286374}
    }
    
  • Mita Mehta
    Arti Chandani
    Ankita Bhatia
    Year: 2019
    Corporate Governance in Small and Medium Enterprises (SME) in India: Does Independent director make an impact on profits of SMEs?
    SIMSARC
    EAI
    DOI: 10.4108/eai.18-12-2018.2286374
Mita Mehta1,*, Arti Chandani1, Ankita Bhatia1
  • 1: Symbiosis Institute of Management Studies, Symbiosis International (Deemed University), Pune
*Contact email: mita.mehta@sims.edu

Abstract

This study is aimed to understand level of incorporation of Corporate Governance in Small and Medium Enterprises (SME) in India. The study review of literature aims at to bring out the level of incorporation of corporate governance in the SME of the developing countries. Though the sector is struggling to implement corporate governance, Reserve Bank of India has instructed the SMEs to implement better governance to have a better access to the finance from both the domestic and International financial institutions. In 2013, Security exchange board of India (SEBI) has allowed the listing of SMEs and the start-up companies in the SME without initial Public offering (IPO). Last few years have been quite progressive year for the SMEs as several policies interventions along with improved access to technology and innovation, are going to create a business friendly environment in the sector. The present study explores whether the presence of Independent director on the board does make a significant contribution to the profit of SMEs or SMEs using data for last 6 years for the SMEs listed in India.