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Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

Author

Listed:
  • Hala M. Amin
  • Ehab K.A. Mohamed
  • Mostaq M. Hussain

Abstract

Purpose - This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach - Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings - This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications - This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications - The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications - The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value - This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact - This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

Suggested Citation

  • Hala M. Amin & Ehab K.A. Mohamed & Mostaq M. Hussain, 2021. "Corporate governance practices and firm performance: a configurational analysis across corporate life cycles," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 29(5), pages 669-697, October.
  • Handle: RePEc:eme:ijaimp:ijaim-11-2020-0186
    DOI: 10.1108/IJAIM-11-2020-0186
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