Designing a Corporate Governance Index for Indian Healthcare Organisations: A Longitudinal Panel Data Analysis of Listed Hospitals

Purpose: This study attempts to create a standardized and quantifiable Corporate Governance Index (CGI) to assess the corporate governance practices of India's listed private hospitals, which will provide stakeholders a consistent, measurable way to assess the quality of governance to make better decisions. Methodology: Data from the top 10 listed healthcare organisations in India over five financial years (2019–20 to 2023–24) was used in a longitudinal panel data study. Six essential governance components served as the foundation for the CGI construction: Board Composition, Board Meetings, Audit Committee, Shareholder Grievances Committee, Remuneration Committee, and Disclosure Practices. Weighted scores were applied to each component to get the total CGI. Findings: The study revealed significant differences in corporate governance practices between the listed hospitals. The results highlight the necessity of better board monitoring and regulatory compliance in order to raise governance standards in the healthcare industry. Practical Implications: The proposed CGI can be used by regulators, legislators, investors, and healthcare management to evaluate and track governance procedures. Additionally, it gives healthcare organisations advice on improving their governance structures, which will increase stakeholder trust and transparency. Novel Contribution: This research is the first to address a critical gap in the literature by developing a CGI especially for the healthcare industry in India.