Beside widely acceptance some studies have observed that negative relation also exists in between CG and Firm performance.(Bathala, 1995).
It is widely accepted that good corporate governance improves the firm’s performance (Brickley, 1997).
Many literatures are published regarding this topic but they focused only on the basis of developed countries related to Board size and Board composition. (Bhagat, 2002).
There is no any relationship found in between CG and Firm performance. (Park, 2003).
Fich and Shivdasani find in their article that the firms with director stock option plans exist higher market value ratios and profitability and the authors concluded that a positive stock market reaction lies when firms announce stock option plans for their directors rather than CG. (Fich, 2004) The article concluded after studying of qualitative aspects of the board that have some contribution to firm value, such as the directors observation of the role of the board and its decision-making technique.process. In this study the authors used simultaneous equation regression model for Tobin’s Q, as a dependent variable of firm performance (Neeraj Dwivedi, 2005 ) Some explanations have also provided such kind of conclusion that the data source may be primary or secondary as these are generally restricted the scope of work like use of ROA, ROE, ROCE etc. could also contribute some amount of inconsistency (Gani, 2006). Often the study has seen that maximum work related to this topic was consisting of two variables, namely, corporate performance and ownership or structure of boards of directors. (Krivogorsky, 2006). According Garg, the board size and performance as also board independence and performance were contradict in nature. A poor performance leads to increase in the size of board, which have a chance to hinder the performance (K, (2007). The study found that corporate governance data are categorised in four components, namely, ownership component, board component, committee component, and board procedure component. This study used OLS regression analysis and established that committee component has statistically significant relationship with company’s firm performance. It is also concluded that corporate governance practices influenced the firm performance positively in the Indian service firm. (Raja & Kumar, 2007 ) In the study of timeliness disclosures of corporate governance norms, it is observed that the authors used market capitalization as a base of choosing the size of firms from BT-500 companies. (Poonam Mahajan, July - December, 2008). The literature found that there are three parameters to decide the relationship of CG and FP, like, board, disclosures and ownership structure. Ultimately it was found that the disclosure norms have a significant impact on firm performance and it is applicable mostly on developed countries. (Manpreet Singh Gill, 2009). The study found that there is a positive relationship in between board size and firm performance. In other side of this study failed to proof that the resource dependency theory for establishemnet of a relation between frequency board meeting and firm performance. This study is based on Pearson correlation variables in regression model. (Johl, 2009) An article A Study on Corporate Governance and the Financial Performance of Selected Indian Companies, the research scholar has proof a positive relationship between EBT/Sales ratio and corporate governance score of selected Indian companies.( Joshi, Ashish B., 2010, A Study …show more content…
But there is no significant relation with ROA. (Dr. Metin COŞKUN And Dr. Özlem SAYILIR, International Journal of Business and Social Science Vol. 3 No. 14 [Special Issue – July 2012]59“Relationship Between Corporate Governanceand Financial Performance of Turkish Companies”
, pg 61. 62)
In Iran it is established that there is a significant relationship between corporate governance mechanisms and finance patterns of 53listed companies in a five year period. The correlation and multivariate regressions were used to test the relationship between the variables; while the significance of the model was confirmed by F-statistics. (Mahmoud Moeinaddin, 2012)
The authors used ROI and Tobin Q as dependent variables to findout the relation between CG and firm performance. (www.ccsenet.org/ijef Intemational Joumal of Economics and Finance Vol. 4, No. 6; June 2012“The Effect of Corporate Govemance, Corporate Financing Decision and Ownership Structure on Finni Performance: A Panel Data Approach from Tehran Stock Exchange, Nassim Shah Moradi', Mahmood Moein Aldin', Forough Heyrani' & Mohsen Iranmahd
It is widely accepted that good corporate governance improves the firm’s performance (Brickley, 1997).
Many literatures are published regarding this topic but they focused only on the basis of developed countries related to Board size and Board composition. (Bhagat, 2002).
There is no any relationship found in between CG and Firm performance. (Park, 2003).
Fich and Shivdasani find in their article that the firms with director stock option plans exist higher market value ratios and profitability and the authors concluded that a positive stock market reaction lies when firms announce stock option plans for their directors rather than CG. (Fich, 2004) The article concluded after studying of qualitative aspects of the board that have some contribution to firm value, such as the directors observation of the role of the board and its decision-making technique.process. In this study the authors used simultaneous equation regression model for Tobin’s Q, as a dependent variable of firm performance (Neeraj Dwivedi, 2005 ) Some explanations have also provided such kind of conclusion that the data source may be primary or secondary as these are generally restricted the scope of work like use of ROA, ROE, ROCE etc. could also contribute some amount of inconsistency (Gani, 2006). Often the study has seen that maximum work related to this topic was consisting of two variables, namely, corporate performance and ownership or structure of boards of directors. (Krivogorsky, 2006). According Garg, the board size and performance as also board independence and performance were contradict in nature. A poor performance leads to increase in the size of board, which have a chance to hinder the performance (K, (2007). The study found that corporate governance data are categorised in four components, namely, ownership component, board component, committee component, and board procedure component. This study used OLS regression analysis and established that committee component has statistically significant relationship with company’s firm performance. It is also concluded that corporate governance practices influenced the firm performance positively in the Indian service firm. (Raja & Kumar, 2007 ) In the study of timeliness disclosures of corporate governance norms, it is observed that the authors used market capitalization as a base of choosing the size of firms from BT-500 companies. (Poonam Mahajan, July - December, 2008). The literature found that there are three parameters to decide the relationship of CG and FP, like, board, disclosures and ownership structure. Ultimately it was found that the disclosure norms have a significant impact on firm performance and it is applicable mostly on developed countries. (Manpreet Singh Gill, 2009). The study found that there is a positive relationship in between board size and firm performance. In other side of this study failed to proof that the resource dependency theory for establishemnet of a relation between frequency board meeting and firm performance. This study is based on Pearson correlation variables in regression model. (Johl, 2009) An article A Study on Corporate Governance and the Financial Performance of Selected Indian Companies, the research scholar has proof a positive relationship between EBT/Sales ratio and corporate governance score of selected Indian companies.( Joshi, Ashish B., 2010, A Study …show more content…
But there is no significant relation with ROA. (Dr. Metin COŞKUN And Dr. Özlem SAYILIR, International Journal of Business and Social Science Vol. 3 No. 14 [Special Issue – July 2012]59“Relationship Between Corporate Governanceand Financial Performance of Turkish Companies”
, pg 61. 62)
In Iran it is established that there is a significant relationship between corporate governance mechanisms and finance patterns of 53listed companies in a five year period. The correlation and multivariate regressions were used to test the relationship between the variables; while the significance of the model was confirmed by F-statistics. (Mahmoud Moeinaddin, 2012)
The authors used ROI and Tobin Q as dependent variables to findout the relation between CG and firm performance. (www.ccsenet.org/ijef Intemational Joumal of Economics and Finance Vol. 4, No. 6; June 2012“The Effect of Corporate Govemance, Corporate Financing Decision and Ownership Structure on Finni Performance: A Panel Data Approach from Tehran Stock Exchange, Nassim Shah Moradi', Mahmood Moein Aldin', Forough Heyrani' & Mohsen Iranmahd