Corporate Governance and Firm Performance
ASWIN TP – MBA in Investment banking and financial markets- Lovely Professional University
RAJEESH KUMAR ROUT – MBA in Investment banking and financial markets – Lovely professional university
PRASOON PAYASI – MBA in Investment banking -Lovely professional university
Abstract—Corporate governance plays a critical role in influencing firm performance and ensuring long-term sustainability in a competitive business environment. This study investigates the relationship between governance mechanisms—such as board structure, ownership patterns, executive compensation, and regulatory compliance—and firm performance. Using a quantitative research approach, the study analyzes primary data collected from industry professionals through structured questionnaires. Statistical tools such as descriptive analysis, reliability testing, correlation, regression, and ANOVA were used to assess the influence of governance variables on financial performance indicators including return on assets (ROA), return on equity (ROE), and firm value.
The findings suggest that firms with strong governance practices, including board independence and separation of CEO and chairman roles, tend to achieve better performance outcomes and demonstrate higher resilience. Regulatory compliance and executive compensation policies are also shown to significantly impact performance. However, the study notes variations across industries and firm sizes, highlighting the importance of context-specific governance reforms. The research contributes practical insights for corporate leaders, policymakers, and investors aiming to improve governance frameworks and drive sustainable growth.
Keywords—Corporate Governance, Firm Performance, ROA, ROE, Board Structure, Executive Compensation, Regulatory Compliance, Board Independence, CEO Duality, Sustainability.
