Authors

1. Dr. B. Charumathi
2. R. Muralikrishnan

Affiliation

• Associate Professor School of Management Pondicherry University Pondicherry
• Ph.D. Research Scholar School of Management Pondicherry University Pondicherry

Abstract

The Indian economy showed a steady growth in recent years, but its GDP growth showed a dip of 6.9% in 2011-2012. It is affected by rousing inflation, weak growth in various sectors and decrease in FDI and turbulent stock markets and international market imbalances. Its power sector faces a acute crisis, in case of power demand and supply. It needs more investments to accelerate growth in the power sector which need, FDI also. But, still it has to do some progress in transparency and governance issues to get those investments. As Corporate governance became the subject of attention in recent times. Its presence is like a backbone for any corporate that emphasizes its role for survival and sustainable growth in the long run. It ensures transparency. Transparency includes the following eight concepts, namely accuracy, consistency, appropriateness, completeness, clarity, timeliness, convenience, and governance & enforcement. Out of these, Timeliness of financial reporting is one of the attribute of good corporate governance identified by the OECD and World Bank. Shareholders and other Stakeholders need information while it is fresh and with high relevance. This paper examines the timeliness of financial reporting by 16 Indian power sector companies which constitute the Power Index of Bombay Stock Exchange and compared their reporting patterns for the financial years 2006-2010. Timeliness was measured by counting the number of days that has been lapsed between year-end and the date of the auditor's report of the concerned companies. The reliable data were drawn from the Prowess (a Centre for Monitoring Indian Economy [CMIE] database) and the Annual reports of the respective companies for the years 2006-2010. This study used Chi-square test and Analysis of variance to analyze the data. There is a significant difference among the Indian public sector companies in their reporting patterns.

Keywords

Corporate governance, Timeliness, Financial reporting, Indian Auto Companies

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