CORPORATE GOVERNANCE INFLUENCE ON MARKET VALUE: ANALYTICAL STUDY

Abstract

Countries around the world are characterized by alternative corporate governance systems (Shleifer and Vishny (1997)). Considerable debate is going on illustrating how good, superior or effective these systems are. Prowse (1995) suggests that such judgements are inherently subjective because of the sparse evidence on the relative performance of different corporate governance systems. This study is focused on how corporate governance maintains the firm performance and protects the shareholders interest and wealth of the organization. We empirically analyze the effect of different corporate governance systems on firm performance by examining a sample of industrial companies over four years period 2018-2021.