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Corporate Governance and Financial Performance Indicators: A Comparative Analysis of Hindustan Unilever, ITC Ltd., and Dabur India Ltd., Maharashtra, India

Author Affiliations

  • 1Department of Commerce, VIVA College of Arts, Commerce and Science, Virar (W), Palghar, Maharashtra, India.

Res. J. Management Sci., Volume 15, Issue (3), Pages 7-11, September,6 (2026)

Abstract

Corporate governance plays a vital role in enhancing organizational transparency, accountability, and long-term financial sustainability. This study, titled ‘Corporate Governance and Financial Performance Indicators: A Comparative Analysis of HUL, ITC Ltd. and Dabur India Ltd. examines the relationship between corporate governance practices and selected financial performance indicators in the Indian FMCG sector. The study focuses on three leading companies HUL, ITC Ltd. and Dabur India Ltd. over the period of six years. A Corporate Governance Index (CGI) was developed using key governance dimensions to assess the quality of governance practices across the selected companies. Financial performance was evaluated using indicators such as EPS and ROA. To examine the relationship between corporate governance and financial performance, Spearman’s Rank Correlation was applied as a non-parametric statistical tool. The findings indicate varied relationships across the selected firms. However it demonstrates, a positive association between governance quality and financial performance in most of the cases, suggesting that improved governance practices contribute positively to profitability and shareholder value. The study concludes that effective corporate governance serves as an important determinant of financial performance, though its impact varies across organizations based on strategic, operational, and market factors.

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