Abstract
In recent years India has been moving further in the direction of adopting an Anglo-American model of corporate governance. This decision, the result more of international economic and political pressures than public debate, in effect represents a new development strategy for the world's most populous democracy. In light of this situation, it is important to ask two basic questions: 1) why has the Anglo-American model of corporate governance been adopted? and; 2) can it be justified? This paper addresses the first of these questions by distinguish and examining three historical models of governance in India: 1) the managing agency model in the colonial period; 2) the business house model that emerged after independence, and; 3) the Anglo-American model which has recently been adopted (and is still emerging). The second question is approached through an examination of the "development impact" of the new model, as indicated by such measures as growth, employment and respect for shareholder rights.
Similar content being viewed by others
References
Bagchi, A. K.: 1999, ‘Globalisation, Liberalisation and Vulnerability: India and Third World’, Economic & Political Weekly (November 6).
Baig, N.: 1971, The Pattern of Company Management In India (Navman Prakashan, Aligarh).
Centre for Monitoring the Indian Economy (CMIE): 1996, The Indian Corporate Sector (CMIE, Delhi).
Centre for Monitoring the Indian Economy: 1998, The Indian Corporate Sector (CMIE, Delhi).
Gupta, L. C.: 1989, Corporate Boards and Nominee Directors (Oxford University Press, Delhi).
Jalan, B.: 1991, India's Economic Crisis: The Way Ahead (Oxford University Press, Oxford).
James, P. J.: 1995, Nehru to Rao (Massline Publications, Kerala).
KPMG: 1998, ‘Business Standard Value Survey’, The Strategist Quarterly ( January-March).
Mehta, M. M.: 1961, Structure of Indian Industries, 2nd edition (Popular Book Depot, Bombay).
Mukherjee-Reed, A.: 2001, Perspectives on the Indian Corporate Economy: Exploring the Paradox of Profits (Palgrave, London).
Narayanan, M. S.: 1994, ‘Industrial Sickness: Review of BIFR's Role’, Economic & Political Weekly (February 12).
Reed, D.: 1998, Three Historical Models of Corporate Governance: An Evaluation of Corporate Economic Responsibility in India (Indian Institute of Management, Calcutta).
Reserve Bank of India: 1999, ‘Performance of Private Corporate Business Sector, 1998–99’, RBI Bulletin (October).
Rungta, R. S.: 1970, The Rise of Business Corporations in India: 1851–1900 (Cambridge University Press, Cambridge).
Sarkar, S.: 1983, Modern India (Macmillan India, New Delhi)
Sharma, M. K.: 1989, Business Environment in India (Commonwealth Publishers, New Delhi).
Shaw, E. S.: 1973, Financial Deepening in Economic Development (Oxford University Press, New York).
Singhania, V. K. 1980, Economic Concentration through Inter-Corporate Investments (Himalaya Publishing House, Bombay).
Thakurdas, P., J. R. D. Tata, G. D. Birla et al.: 1944, The Bombay Plan for India's Economic Development, a Brief Memorandum Outlining a Plan of Economic Development for India (Penguin, London).
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Reed, A.M. Corporate Governance Reforms in India. Journal of Business Ethics 37, 249–268 (2002). https://doi.org/10.1023/A:1015260208546
Issue Date:
DOI: https://doi.org/10.1023/A:1015260208546