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The association between corporate governance and firm performance – a meta-analysis

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  • Sayla Sowat Siddiqui

Abstract

Purpose - – The purpose of this paper is to investigate the relationship between corporate governance and firm performance by conducting a meta-analysis of 25 previous studies. The analysis has three specific concerns, i.e. the moderating effects of legal systems (common law or civil law), governance mechanisms (external or both external and internal governance together) and performance measures (accounting or market value). Design/methodology/approach - – The methodology used is the meta-analysis technique developed by Hunteret al.(1982). Findings - – The findings show that the external governance mechanisms measured by anti-takeover provisions and market value of firm performance measured by Tobin’s Q and market to book value are the key moderators of this relationship. Practical implications - – This paper has important implications for regulators and directors by proposing external governance to be an influential factor of firm performance. This paper is also of interest to the investors and companies by highlighting the significant relationship between corporate governance and market value of the firm. Originality/value - – As the author finds that the external governance mechanism (anti-takeover provisions) exerts more influential effect on firm performance than both external and internal governance together, this research confirms the imperative for external governance to increase the firm value.

Suggested Citation

  • Sayla Sowat Siddiqui, 2015. "The association between corporate governance and firm performance – a meta-analysis," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 23(3), pages 218-237, August.
    • Handle: RePEc:eme:ijaimp:v:23:y:2015:i:3:p:218-237
    DOI: 10.1108/IJAIM-04-2014-0023
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    Citations

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    Cited by:

    1. Marwan Mansour & Hafiza Aishah Hashim & Faozi A. Almaqtari & Waleed M. Al-ahdal, 2023. "A review of the influence of capital structure on the relationship between corporate governance and firm performance," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 17(1), pages 79-105.
    2. Sameer Al Johani & Adnan Atm, 2022. "Revisiting the Relationship between Corporate Governance and Firm performance: Evidence from British Manufacturing Firms," Acta Universitatis Bohemiae Meridionalis, University of South Bohemia in Ceske Budejovice, Faculty of Economics, vol. 25(1), pages 7-32.
    3. Monica Singhania & Ibna Bhan, 2026. "Do Board Characteristics Influence Carbon Disclosure? A Systematic and Meta‐Analytic Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 33(1), pages 1383-1404, January.
    4. Maria Mitroulia & Evangelos Chytis & Thomas Kitsantas, 2025. "Exploring the Nexus between Corporate Sustainability Disclosure and Firm Tax Behaviour: A Meta-Analysis," Central European Business Review, Prague University of Economics and Business, vol. 2025(3), pages 103-131.
    5. Marwan Mansour & Hafiza Aishah Hashim & Zalailah Salleh & Waleed M. Al-ahdal & Faozi A. Almaqtari & Murad Abdulsalam Qamhan, 2022. "Governance practices and corporate performance: Assessing the competence of principal-based guidelines," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2105570-210, December.

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