THE IMPACT OF CORPORATE GOVERNANCE ON COMPANY PERFORMANCE (LITERATURE REVIEW)

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F22%3A63553118" target="_blank" >RIV/70883521:28120/22:63553118 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.7441/dokbat.2022.21" target="_blank" >http://dx.doi.org/10.7441/dokbat.2022.21</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.7441/dokbat.2022.21" target="_blank" >10.7441/dokbat.2022.21</a>

Result language

angličtina

Original language name

THE IMPACT OF CORPORATE GOVERNANCE ON COMPANY PERFORMANCE (LITERATURE REVIEW)

Original language description

The objective of this paper is to analyse the empirical research that has examined therelationship between corporate governance rating and firm performance in the last two decades,taking into account its possible implications for publicly traded companies in the countries ofVisegrad Group (V4).The research on corporate governance evaluation and its impact on firm performance isextensive. It varies from developed to developing countries, uses different mechanisms forcorporate governance assessment and employs miscellaneous calculations to measure firmperformance. This study focuses on corporate governance indices as a comprehensive way ofmeasuring the overall level of corporate governance.The literature review was undertaken using comparative analysis. The articles focusing oncorporate governance indices and their impact on firm performance in academic journaldatabases since 2001 were explored. Out of the substantial amount of research, a representativesample was selected and analysed in greater detail.The paper established that there is no consistent method of corporate governance evaluationand assessment of its impact on firm performance. Also, the findings vary from a strong positiverelationship between corporate governance rating and firm performance to a non-existent ornegative relationship. There is no doubt among researchers, however, that good corporategovernance represents an important tool in company management.From the factors determining the relationship between corporate governance rating andcompany performance, it was recognized that the institutional environment plays an essentialrole. The strong positive relationship is more often established in emerging markets, whereasin strongly developed economies with higher investor protection the results are mixed.Corporate governance rating also has a greater impact in countries with a continental law systemthan in countries with a common law system.For further research, it is recommended to adopt a shared model of corporate governance rating.With respect to its content, it is necessary to reflect the type of legal system and financing.Furthermore, the corporate governance rating shall consider factors of sustainability. It is alsorecommended to pay attention to statistical and accounting correctness.In the case of V4, i.e. the Czech Republic, Hungary, Poland and Slovakia, which have weakerinstitutional environments, the literature review provides evidence that corporate governancescoring can promote a higher general level of corporate governance, equipping companies witha competitive advantage and improving their access to capital.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

DOKBAT 2022 - 18th International Bata Conference for Ph.D. Students and Young Researchers

ISBN

978-80-7678-101-6

ISSN

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e-ISSN

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Number of pages

13

Pages from-to

208-220

Publisher name

Fakulta managementu a ekonomiky, UTB ve Zlíně

Place of publication

Zlín

Event location

Zlín

Event date

Sep 14, 2022

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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