Effect of Corporate Governance Mechanisms on Value Relevance of EPS and BV: Evidence from the Indian Tourism Industry

https://doi.org/10.48185/sebr.v2i1.285

Authors

  • Saleem Ahmed Aqlan Dr. Babasaheb Ambedkar Marathwada University Aurangabad
  • Yaser M. Alashaf Dr. Babasaheb Ambedkar Marathwada University
  • Mohammed Salem Barakat University of Science and Technology
  • Dheya A. Zaid

Keywords:

corporate governance mechanisms,, value relevance,, earning per share,, book value,, tourism industry.

Abstract

This paper examines corporate governance's effect on the valuation of Earnings per Share (EPS) and Book Value (BV).Differently from empirical previous studies in the area of corporate governance and value relevance of EPS and BV, this study investigates this impact within a unique setting of publicly listed tourism firms Using panel data from a selection of some Bombay Stock Exchange (BSE) listed companies from 2013 to 2015. The paper explored three aspects of the mechanisms of corporate governance: the board of directors (size, composition and diligence), the audit committee (size, composition and diligence) and foreign ownership .The study uses descriptive statistics, correlation and multi-regression model to analyse the influence of corporate governance on the value relevance of EPS and BV for the Indian tourism industry. The results show that the interaction between corporate governance mechanisms and value relevance of BV has more impact on the share prices than EPS. It is recommended that the Indian tourism industry should pay more focus to corporate governance mechanisms in order to improve its value relevance of EPS, BV and share prices.

Published

2021-06-30 — Updated on 2021-06-30

Versions

How to Cite

Aqlan, S. A., Alashaf, Y. M., Barakat , M. S. ., & A. Zaid, D. (2021). Effect of Corporate Governance Mechanisms on Value Relevance of EPS and BV: Evidence from the Indian Tourism Industry. Studies in Economics and Business Relations, 2(1), 31–44. https://doi.org/10.48185/sebr.v2i1.285