IDEAS home Printed from https://ideas.repec.org/a/aml/intbrm/v10y2019i2p13-28.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.cscjournals.org/manuscript/Journals/IJBRM/Volume10/Issue2/IJBRM-267.pdf
    Download Restriction: no
    File URL: https://www.cscjournals.org/library/manuscriptinfo.php?mc=IJBRM-267
    Download Restriction: no
    ---><---

    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garry D. Carnegie & Ann Martin-Sardesai & Lisa Marini & James Guthrie AM, 2021. "“Taming the black elephant”: assessing and managing the impacts of COVID-19 on public universities in Australia," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 30(6), pages 1783-1808, October.
    2. Parker, Lee D., 2012. "Qualitative management accounting research: Assessing deliverables and relevance," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(1), pages 54-70.
    3. Murphy, Tim & O’Connell, Vincent & Ó hÓgartaigh, Ciarán, 2013. "Discourses surrounding the evolution of the IASB/FASB Conceptual Framework: What they reveal about the “living law” of accounting," Accounting, Organizations and Society, Elsevier, vol. 38(1), pages 72-91.
    4. Mohamad-Yusof, Nor Zalina & Wickramasinghe, Danture & Zaman, Mahbub, 2018. "Corporate governance, critical junctures and ethnic politics: Ownership and boards in Malaysia," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 55(C), pages 33-52.
    5. Lehman, Glen, 2010. "Interpretive accounting research," Accounting forum, Elsevier, vol. 34(3), pages 231-235.
    6. Aila Virtanen, 2012. "Women on the boards of listed companies: Evidence from Finland," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 571-593, November.
    7. Li, Jing & Mangena, Musa & Pike, Richard, 2012. "The effect of audit committee characteristics on intellectual capital disclosure," The British Accounting Review, Elsevier, vol. 44(2), pages 98-110.
    8. Sara Moggi & Gina Rossi & Chiara Leardini, 2019. "How to be accountable to local stakeholders: A lesson from savings banks," CONTABILIT? E CULTURA AZIENDALE, FrancoAngeli Editore, vol. 0(2), pages 35-67.
    9. Christopher, Joe, 2010. "Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(8), pages 683-695.
    10. Dr. Madan Lal Bhasin, 2012. "Voluntary Corporate Governance Disclosures: Evidence From A Developing Country," Far East Journal of Psychology and Business, Far East Research Centre, vol. 9(2), pages 10-31, November.
    11. Passetti, Emilio & Tenucci, Andrea & Cinquini, Lino & Frey, Marco, 2009. "Intellectual capital communication: evidence from social and sustainability reporting," MPRA Paper 16589, University Library of Munich, Germany.
    12. Aila VIRTANEN & Tuomo TAKALA, 2016. "Accountability Of Corporate Boards In Finland," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(1), pages 5-24, March.
    13. Wessel M. Badenhorst, 2014. "Fair Value Measurements of Control Premiums," Accounting Perspectives, John Wiley & Sons, vol. 13(3), pages 173-188, September.
    14. Pamela Kent & Tamara Zunker, 2017. "A stakeholder analysis of employee disclosures in annual reports," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 533-563, June.
    15. Philip D. Palmer, 2013. "Exploring attitudes to financial reporting in the Australian not-for-profit sector," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(1), pages 217-241, March.
    16. Zdravko Todorovic & Igor Todorovic, 2012. "Compliance With Modern Legislations Of Corporate Governance And Its Implementation In Companies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 8(2), pages 309-318.
    17. Ruth Hidalgo & Emma García-Meca & Isabel Martínez, 2011. "Corporate Governance and Intellectual Capital Disclosure," Journal of Business Ethics, Springer, vol. 100(3), pages 483-495, May.
    18. Yuying Liu & Tao Xiong, 2016. "Situated Task-based Language Teaching in Chinese Colleges: Teacher Education," English Language Teaching, Canadian Center of Science and Education, vol. 9(5), pages 1-22, May.
    19. David Collison & Colin Dey & Gwen Hannah & Lorna Stevenson, 2010. "Anglo‐American capitalism: the role and potential role of social accounting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(8), pages 956-981, October.
    20. Igor Todorovic, 2013. "Impact Of Corporate Governance On Performance Of Companies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 9(2), pages 47-54.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aml:intbrm:v:10:y:2019:i:2:p:13-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nabeel Tahir (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.