An empirical investigation of hybrid corporate governance systems in large firms : evidence from India

The heightened pace of corporate governance reforms has focussed attention on countryspecific governance models. In relation to India, scholars have observed that a hybrid of the outsider Anglo-Saxon system and the insider Continental system is likely. This paper reports
the results of a study that investigated the corporate governance system of five large firms in 2008. It presents evidence based on publicly available documents and twelve key executive interviews. The paper initially presents a literature review and establishes six propositions
based on the distinguishing features of the two major systems, and then presents the methodology, findings and discussion. The governance characteristics of the Indian firms are classified in terms of the two systems with a view to assessing the extent and nature of hybridization. The findings endorse the hybrid corporate governance system in India.
However, the scope of this study was limited to large listed companies and business groups. Future research should use a larger and more diverse sample including private and unaffiliated firms for outcomes that can be generalized.

An empirical investigation of hybrid corporate governance systems in large firms: Evidence from India

The heightened pace of corporate governance reforms has focused attention on country-specific
governance models. Considerable debate has ensured as to whether the outsider Anglo-Saxon system
or the insider Continental system is most applicable to India. This paper reports the results of a study
of Indian governance which used a primary qualitative approach of twelve interviews of key executives
of five large firms in 2008 as well as publicly available documents. A literature review establishes six
key characteristics that distinguish the two major systems. The governance characteristics of the
Indian firms are classified in terms of the two systems with a view to assessing the extent and nature of
hybridization. The findings endorse the hybrid corporate governance system of India, clearly
identifying similarities and differences to the two major governance models. In drawing on rich
interview data, the paper delves into the national characteristics of India that have influenced the
hybrid model such as stewardship, corporate social responsibility and partnerships between the
corporate and community sectors. The evolution of the governance practices and the rationale for their
existence are also examined. The paper demonstrates that the hybrid governance system has emanated
from country-specific culture including values and ideologies, and political orientation of socialism.
The scope of this study was limited to large listed companies and business groups. Future research
should use a larger and more diverse sample including private and unaffiliated firms for outcomes that
can be generalized.