Corporate governance impact on significant aspect of firms’ performance: An evidence from top 100 global public companies

Abstract

Studies of corporate governance in the context of Fortune global 100 public listed companies are found very limited in literature. The objective of this research is to quantify the relationship between corporate governance (CG) and the performance of these global firms. In this study, Corporate Governance characteristic that were investigated are; Size of the board, Board structure (single-tier & dual-tier), CEO duality, CEO gender, Presence of female on board; and presence of academician on board. Secondly data has been collected and analysed using multiple regression technique was performed. The results of this study indicate that only CEO duality have a positive impact to firms’ performance. This result provides some support to the stewardship theory, where shareholders interest is maximized when the CEO is also the chair-man of the Board. The study also finds board diversity (by having both women and academician on the board) and having a bigger board (bigger board size and dul-tier board) does not contribute to better Shareholders’ returns.