Corporate Governance and Financial Performance

Abstract

Corporate governance plays a crucial role in ensuring transparency, accountability, and efficiency in the management of business organizations. It refers to the system of rules, practices, and processes through which companies are directed and controlled to protect the interests of shareholders and stakeholders. Effective corporate governance contributes to ethical decision-making, financial discipline, and long-term organizational sustainability. The present study examines the relationship between corporate governance practices and financial performance through an analysis of selected companies across different sectors. governance factors such as board structure, board independence, audit committees, ownership patterns, executive compensation, and transparency in financial reporting. Financial performance is evaluated using indicators including Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), and net profitability ratios. Secondary data collected from annual reports, corporate disclosures, and published financial statements are used for comparative analysis.