Investor Perception towards Corporate Governance and Its Influence on Investment Decisions: A Study among Employee Investors in Bangalore

Akash C L   |   Prof. Rinku Modoor

Akash C L — MBA (Finance) Student, Surana College Autonomous, Bangalore University,

Bengaluru, India

Prof. Rinku Modoor — Research Guide, Department of MBA, Surana College Centre for Post Graduate Studies, KS Town, Bangalore – 560060

Abstract

Corporate governance is increasingly recognised as a determinant of investor confidence, yet little empirical work examines how employees who invest in equity markets — insiders with first-hand exposure to corporate culture — perceive governance and translate that perception into investment decisions in a digital-first environment. This study investigates (i) whether perception towards corporate governance differs by years of investment experience, (ii) the relationship between awareness/understanding of governance reports and investment decisions, and (iii) the influence of digital sentiment and company online reputation on investment decisions among employee investors in Bengaluru. Using a descriptive, quantitative design, primary data were collected from 152 employee investors through a structured, five-point Likert questionnaire and analysed using One-Way ANOVA, Pearson correlation and multiple linear regression. Results show no significant difference in governance perception across experience groups (F = 0.902, p = 0.408), a significant moderate positive correlation between governance-report awareness and investment decisions (r = 0.342, p < 0.001), and a significant joint effect of digital sentiment and online reputation on investment decisions (R² = 0.300, F = 31.970, p < 0.001). The findings suggest that governance transparency and digital reputation management are complementary levers for building investor trust among a technologically engaged, financially literate workforce.

Keywords: Corporate governance; investor perception; investment decisions; employee investors; digital sentiment; online reputation; behavioural finance