A Narrative Analysis on Digitalization: A New Era in Corporate Governance

Abstract

Today we are in the era of Corporate Governance 4.0 which is forward-looking and technologically enabling our businesses so that they remain relevant and competitive. Since the digital world is changing at such a rapid pace, companies must respond promptly in managing their digital transformation. This digital transformation works as a tool to ensure good corporate governance. There is scant research on the impact of digitalization on companies in general and on Boards mainly. This study is qualitative since only selected areas of regulatory frameworks that particularly address digitalization were chosen and content-wise studied. The impact of the digital revolution on corporate governance in India is examined in this article . The laws, guidelines and the listing regulations are employed to examine their impact. The findings showed that the Government tries to digitalize the regulatory frameworks and requirements related to corporate governance gradually. With the help of digital technology, the Board of directors take speedier decisions, works more efficiently and effectively and overall, it offers new opportunities. At the same time, the era of digitalization brings along new challenges that will be faced such as cyber security, technically efficient people on the Board, establishing high standard analytics, and upgrading the technical knowledge from time to time. Nevertheless, it can be a tipping point in corporate governance. A wide range of possibilities for future research may open up such as, how does digitization affect the shareholder’s monitoring and how does digitization influence the relationship between the company and stakeholders such as investors, suppliers, regulators, etc.