The Role of Transparency in Corporate Governance: Assessing Its Effect on the Performance of Indian Firms

Abstract

The aim of the study is to examination the concept of transparency in corporate governance and its performance implications in the Indian companies. The study had a mixed-method research design that involved primary data and secondary data collection. The data of the first category was gathered in systematic questionnaires that included 200 executives and stakeholders working in different industries and at different levels, but it was supplemented by the secondary data. According to the study findings, there is a statistically significant correlation between the corporate transparency and financial performance (r = 0.175, p = 0.013). Overall, corporate governance practice transparency was found to be a strong predictor of stakeholder trust and investor confidence (β = 0.495, p < 0.001), within which governance practice transparency accounted for 24.5% of the variance. In conclusion, the study shows that transparency operates as an ethical obligation of firms and as a strategic imperative, one which leads to better financial assurance and stakeholder trust.