Role of Corporate Governance in Enhancing Firm Value: An Empirical Analysis

Abstract

Corporate governance plays a vital role in ensuring transparency, accountability, and effective management, which are essential for enhancing firm value. This study presents an empirical analysis of the role of corporate governance in improving firm value by examining key governance mechanisms such as board composition, ownership structure, audit committees, and disclosure practices. Using secondary data drawn from corporate financial statements and governance reports, the study analyses the relationship between governance quality and firm value indicators, including market valuation, return on assets, and return on equity. firms with stronger corporate governance frameworks tend to exhibit higher firm value, better financial performance, and increased investor confidence. Effective governance mechanisms reduce agency problems, improve managerial efficiency, and promote long-term strategic decision-making. The importance of robust corporate governance practices for sustainable value creation and provides insights for policymakers, regulators, and corporate managers seeking to strengthen governance structures to enhance firm value.