Corporate governance and firm performance: A review of empirical studies
List of Authors
  • Sadat Ibn Adam , Yakubu Shaba

Keyword
  • Corporate Governance, Firm Performance, Review, Empirical Studies

Abstract
  • Although, there is growing consensus that corporate governance mechanisms and firm performance are related, empirical evidence to support the consensus is, however, far from settled. In fact, scholars and market analysts have not reached agreement on the strength of the relationship between various governance mechanisms and performance of the firm. To some, there is no connection between the two. In view of these, sufficient empirical evidences have emerged in support thereof. This study provides elaborate insights into the literature that studied the role of these mechanisms in relation to various measures of firm performance. The findings from our review are, no doubt, ambiguous. These ambiguities may be due to differences in theoretical frameworks, sampling and estimation methods as well as variations in data used as well as peculiarities of countries and/or industries of studies. In view of these, this study notes these shortcomings and advocates more appropriate research design, a mixture of accounting and market-oriented variables, longer study period, larger sample size and advance technique of data analysis that are capable of providing better ways of minimising the principal-agent problems of the corporate world.

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