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Does Corporate Governance Enhance Firm Performance?: An Empirical Literature Evidence

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  • Florinita DUCA

    („Artifex” University of Bucharest)

Abstract

This paper is a review of the empirical literature evidence on whether corporate governance actually enhances firm performance.The concept of corporate governance has attracted considerable attention, domestically and internationally, in recent years. Previous research, largely conducted using international data, has suggested that better governed firms outperform poorer governed firms in a number of key areas. Issues and Significance: It is widely believed that good corporate governance is an important factor in improving the value of a firm in both developing and developed financial markets. However, the relationship between corporate governance and the value of a firm differs in developing and developed financial markets due to disparate corporate governance structures in these markets resulting from the dissimilar social, economic and regulatory conditions in these countries.

Suggested Citation

  • Florinita DUCA, 2012. "Does Corporate Governance Enhance Firm Performance?: An Empirical Literature Evidence," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 60(1), pages 53-56, March.
    • Handle: RePEc:rsr:supplm:v:60:y:2012:i:1:p:53-56
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    References listed on IDEAS

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    1. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer & Robert Vishny, 2002. "Investor Protection and Corporate Valuation," Journal of Finance, American Finance Association, vol. 57(3), pages 1147-1170, June.
    2. Wolfgang Drobetz & Andreas Schillhofer & Heinz Zimmermann, 2004. "Corporate Governance and Expected Stock Returns: Evidence from Germany," European Financial Management, European Financial Management Association, vol. 10(2), pages 267-293, June.
    3. Stijn Claessens, 2006. "Corporate Governance and Development," The World Bank Research Observer, World Bank, vol. 21(1), pages 91-122.
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