| dc.description.abstract | one were to choose the one issue that simultaneously places the CEO’s ob security
in the cross-hairs while also testing to the limit the board of directors’ oversight role in
mitigating the agency conflict between management and shareholders, that issue
would likely be the spectre of sustained decline in financial performance over the
years. This study investigates how the corporate governance structures and practices
of firms at the NSE change as a remedial reaction to persistent fall to a company value.
After a decline of two consecutive years we examine change in four governance
structures and practices. We find that board meeting frequency increase with
declining performance, the number of outside independent directors on the board
increases, Insider ownership falls with falling firm, and finally, CEO remuneration
appears insensitive to firm performance. | en |
