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The Impact of Corporate Governance on Improving Overall Performance of the Companies

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  • Najla'a ALHaj

    (Jinan University, Lebanon, Labanon)

Abstract

Corporate governance is recognized as one of the most important implications in building marketplace confidence. The study will assess the level of implementation of corporate governance and level of performance in seven companies from different industries in some countries. We selected seven companies (Audi Bank, Nestlé Group, Dana Gas, Medgulf, Coca Cola, SABIS, Al Baraka Banking Group) which operate in different sectors (Banking, Food and beverages, Energy, Insurance, Education, and Islamic Banking). The result of the study shows that there is a significant relationship between corporate governance practices and companies' performance. It is expected that the findings of this research paper would contribute to improve understanding about corporate governance practices and their impacts on improving overall performance of the companies. Results of the study shows that through appropriate application of the standards of corporate governance companies increase profitability, effectiveness and efficiency, improve their credibility, sustainability, transparency, disclosure, reputation, competitiveness and quality in all aspects and enhance management control, risk management, financial management, oversight and relations with key stakeholders such as investors, business partners, employees, customers, etc. The study recommends that companies should implement corporate governance principles and standards in their strategy and decision making process. They should focus on board of directors, committee structure, risk management, internal audit, external audit, internal control, human capital, sustainability, social responsibility, financial management, disclosure, transparency and the rights of shareholders.

Suggested Citation

  • Najla'a ALHaj, 2019. "The Impact of Corporate Governance on Improving Overall Performance of the Companies," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 10(2), pages 13-28, April.
    • Handle: RePEc:aml:intbrm:v:10:y:2019:i:2:p:13-28
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    References listed on IDEAS

    as
    1. Lee Parker, 2007. "Financial and external reporting research: the broadening corporate governance challenge," Accounting and Business Research, Taylor & Francis Journals, vol. 37(1), pages 59-61.
    2. Stupina J., 2013. "Stages of change management process in the enterprise," Вісник економіки транспорту і промисловості, CyberLeninka;Украинская государственная академия железнодорожного транспорта, issue 44, pages 184-187.
    3. Lee Parker, 2007. "Financial and external reporting research: the broadening corporate governance challenge," Accounting and Business Research, Taylor & Francis Journals, vol. 37(1), pages 39-54.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Governance; Firm Performance; Companies.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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