AN EMPIRICAL ANALYSIS OF CORPORATE GOVERNANCE AND STOCK MARKET PERFORMANCE

Corporate governance plays a vital role in ensuring transparency, accountability, and efficiency in corporate operations, which ultimately influences stock market performance. This study empirically examines the relationship between corporate governance mechanisms and stock market performance. Using secondary data from prior empirical studies, the paper analyzes how governance variables such as board structure, ownership patterns, and regulatory quality impact stock returns, volatility, and firm valuation. The findings indicate that strong corporate governance is generally associated with improved market performance, reduced risk, and enhanced investor confidence. However, the relationship is complex and varies across markets and institutional settings.