The Influence of Corporate Governance on Financial Performance: Evidence from Global Markets

Authors

  • I. Katharaj

    Assistant Professor, Department of Mechanical Engineering, Faculty of Engineering and Technology, JAIN (Deemed-to-be University), Ramanagara District, Karnataka, India

  • Megha Jagga

    Centre of Research Impact and Outcome, Chitkara University, Rajpura, Punjab, India

  • Hitesh Kalra

    Chitkara Centre for Research and Development, Chitkara University, Himachal Pradesh, India

  • Dr. Garima Srivastava

    Assistant Professor, Business Management, Maharishi University of Information Technology, Uttar Pradesh, India 5 Director, ISME, ATLAS SkillTech University, Mumbai, India

  • Dr. Varsha Agarwal

    Director, ISME, ATLAS SkillTech University, Mumbai, India

  • Dr. JyotiRanjan Das

    Professor, Department of Management, Siksha 'O' Anusandhan (Deemed to be University), Bhubaneswar, Odisha, India

  • Dr.B. Bhavya

    Assistant Professor, Master of Business Administration, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India

How to Cite

Katharaj , I. ., Jagga, M. ., Kalra, H. . ., Srivastava , D. G. ., Agarwal , D. V. ., Das, D. J. ., & Bhavya , D. . (2025). The Influence of Corporate Governance on Financial Performance: Evidence from Global Markets. International Journal of Accounting and Economics Studies, 12(SI-1), 32-35. https://doi.org/10.14419/9f1ygh85

Received date: May 15, 2025

Accepted date: May 31, 2025

Published date: August 28, 2025

DOI:

https://doi.org/10.14419/9f1ygh85

Keywords:

Corporate Governance; Financial Performance; Global Markets; Agency Theory; Businesses

Abstract

Corporate governance significantly influences economic growth and financial market stability. There has been ongoing debate among scholars regarding the connections between corporate governance, market value, and company performance, leading to different findings. This study was a correlational study intended to investigate corporate governance practices and financial success with reference to agency theory and institutional theory. It tested several different dimensions of corporate governance, including CEO pay, ownership structure, board size, board independence, and the existence of board committees. As history shows, corporate governance models and philosophies are constantly evolving. One reason for this shift is the growing emphasis on profit over social responsibility, which often takes a backseat. Companies worldwide are now striving to weave governance into their corporate frameworks. With the rise of capitalism, corporations have gained significant power, leading governments to relinquish some control to their influence. Today, businesses stand as formidable institutions, manifesting in various forms, sizes, and capacities across the globe. Their governance practices have a profound impact on economies and the broader social landscape. Unfortunately, many companies have seen their market value decline, causing shareholders to lose confidence. Effective corporate governance is defined by legitimacy, accountability, and competence, all while upholding the law and respecting human rights in policy and delivery service. The Cadbury report simplifies the concept by illustrating how corporate governance oversees and regulates business operations.

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How to Cite

Katharaj , I. ., Jagga, M. ., Kalra, H. . ., Srivastava , D. G. ., Agarwal , D. V. ., Das, D. J. ., & Bhavya , D. . (2025). The Influence of Corporate Governance on Financial Performance: Evidence from Global Markets. International Journal of Accounting and Economics Studies, 12(SI-1), 32-35. https://doi.org/10.14419/9f1ygh85

Received date: May 15, 2025

Accepted date: May 31, 2025

Published date: August 28, 2025