Proceedings of the International Conference on Smart Systems and Social Management (ICSSSM-2 2025)

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The Nexus Between Corporate Governance and Market Valuation: A Study of BSE Sensex Companies

Authors
Kalyani Gohain1, *, S. P. Singh2, Nibir Pratim Choudhury1, Neha Tiwari1
1Royal School of Business, The Assam Royal Global University, Guwahati, Assam, India
2Director General, Kaushalya-The Skill University, Ahmedabad, Gujarat, India
*Corresponding author. Email: kgohain@rgu.ac
Corresponding Author
Kalyani Gohain
Available Online 31 December 2025.
DOI
10.2991/978-2-38476-533-1_35How to use a DOI?
Keywords
Corporate governance; Share price; Earnings per share; Return on equity; Market valuation; BSE Sensex
Abstract

Corporate governance has become a key determinant of market confidence and long-term corporate performance. It reflects how effectively a company is managed in the interests of its shareholders and stakeholders, promoting transparency and accountability. This study explores the nexus between corporate governance and market valuation among BSE Sensex-listed companies in India. The analysis considers the Corporate Governance Score (CGS), Return on Equity (ROE), Earnings per Share (EPS), and Dividend per Share (DPS) as independent variables and Share Price (SP) as the dependent variable. Secondary data from the financial years 2019–20 and 2020–21 were obtained from company annual reports and official databases. A linear regression model was applied to examine how governance practices and financial indicators affect share price movements. The results indicate that EPS has a statistically significant effect on share price, while CGS, ROE, and DPS show insignificant relationships. These findings suggest that profitability indicators play a more decisive role in market valuation than governance factors. The study reinforces the notion that strong earnings performance remains the dominant driver of investor perception in emerging markets like India, though corporate governance continues to underpin sustainable growth and corporate credibility.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Smart Systems and Social Management (ICSSSM-2 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 December 2025
ISBN
978-2-38476-533-1
ISSN
2352-5398
DOI
10.2991/978-2-38476-533-1_35How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Kalyani Gohain
AU  - S. P. Singh
AU  - Nibir Pratim Choudhury
AU  - Neha Tiwari
PY  - 2025
DA  - 2025/12/31
TI  - The Nexus Between Corporate Governance and Market Valuation: A Study of BSE Sensex Companies
BT  - Proceedings of the International Conference on Smart Systems and Social Management (ICSSSM-2 2025)
PB  - Atlantis Press
SP  - 609
EP  - 617
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-533-1_35
DO  - 10.2991/978-2-38476-533-1_35
ID  - Gohain2025
ER  -