Business, Management and Accounting
8 years ago

Study finds corporate governance has no impact on firm performance

Journal of Economics and Sustainable Development
Corporate Governance and Firm Performance: A Study of Sri Lankan Manufacturing Companies
T. Velnampy

Paper Summary

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Corporate governance is important for companies to be managed well and increase shareholder value. A study in Sri Lanka looked at 28 manufacturing companies from 2007 to 2011. They found that factors like board structure and size don't affect how well a company performs. In simple terms, having a certain type of corporate governance doesn't necessarily make a company more profitable.