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Corporate Governance And Firm Performance

Author

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  • Claudiu BOCEAN
  • Catalin M. BARBU

    (University of Craiova, Craiova, Romania)

Abstract

Good corporate governance is an important step in building market confidence and encouraging more stable, long-term international investment flows. Many countries see better corporate governance practices as a way to improve economic dynamism and thus enhance overall economic performance. This paper sets out to further develop our understanding of corporate governance and its effects on corporate performance and economic performance. In doing so, it addresses some of the underlying factors that promote efficient corporate governance, and examines some of the economic implications associated with various corporate governance systems. I provide an framework for understanding how corporate governance can affect corporate performance. In the wake of a literature survey, I find that corporate governance matters for economic performance, insider ownership matters the most, outside ownership concentration destroys market value, direct ownership being superior to indirect.

Suggested Citation

  • Claudiu BOCEAN & Catalin M. BARBU, 2007. "Corporate Governance And Firm Performance," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 5(1), pages 125-131, November.
    • Handle: RePEc:aio:manmar:v:5:y:2007:i:1:p:125-131
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    References listed on IDEAS

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    Cited by:

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    2. Emmanuel Chuke Nwude & Musa Sani Zakirai & Comfort Amaka Nwude, 2023. "Ownership Structure and Bank Performance in Emerging Market Economy: Evidence From Nigerian Listed Deposit Money Banks," SAGE Open, , vol. 13(4), pages 21582440231, December.
    3. Mohammed Mahmud Kakanda, & Basariah Salim, & Sitraselvi Chandren,, 2017. "Do board characteristics and risk management disclosure have any effect on firm performance? Empirical evidence from Deposit Money Banks (DMBs) in Nigeria," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(4), pages 506-521, October.
    4. Mario La Torre & Sabrina Leo & Ida Claudia Panetta, 2021. "Banks and environmental, social and governance drivers: Follow the market or the authorities?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1620-1634, November.
    5. John Abuh Oyidih, 2023. "Effect of Board Gender Diversity on Financial Performance of Quoted Deposit Money Banks in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(11), pages 442-456, November.
    6. Mihai Constantin Razvan BARBU & Liviu CRACIUN, 2012. "Considerations On Managerial Ethics In Sports Organizations," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 59-68, May.
    7. Khurram Sultan, 2018. "Effects of Corporate Governance on Organization’s Performance: Evidence from Karachi Stock Exchange (30 Index)," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 63-72, July.
    8. ŞİT Ahmet & EKŞİ İbrahim Halil & BUYURAN Burcu, 2022. "How Important Is Corporate Governance Features And The Lags On Audit Reports In Firm Performance: The Case Of Turkey," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 218-237, April.

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    More about this item

    Keywords

    corporate governance; company performance;

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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