The influence of corporate governance practice on financial performance evidence from listed companies

Abstract

Improving a company's bottom line is one of the primary goals of good corporate governance, which also promotes openness, responsibility, and risk management. The determination of this research is to examine how listed firms' financial performance is affected by their corporate governance policies. A quantitative method looks at data from a cross-section of industries and firms over a certain time frame. Financial performance procedures together with return on assets (ROA), return on equity (ROE), as well as profitability are used to assess important governance indicators such board structure, ownership patterns, audit committee effectiveness, and CEO remuneration. Strong corporate governance procedures are positively correlated with superior financial results, showing that governance is crucial for long-term financial sustainability. Politicians, investors, and business executives may all benefit from this study's findings if they are working to improve governance frameworks for increased financial success.