Importance of Corporate Governance: Impact on Firm's Performance and Best Practices

Running head: IMPORTANCE OF CORPORATE GOVERNANCE ON FIRM'S
PERFORMANCE
Importance of Corporate Governance on Firm's Performance
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Author’s Note

1IMPORTANCE OF CORPORATE GOVERNANCE ON FIRM'S PERFORMANCE
Table of Contents
Title............................................................................................................................................2
Rationale....................................................................................................................................2
Research Objectives...................................................................................................................2
Research Questions....................................................................................................................3
Literature Review.......................................................................................................................3
Research Methods......................................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

2IMPORTANCE OF CORPORATE GOVERNANCE ON FIRM'S PERFORMANCE
Title
Importance of Corporate Governance on Firm's Performance
Rationale
Corporate Governance can be considered as an important concept that includes many
aspects like rights of the shareholders, internal control, social responsibility of the businesses,
role and structure of the management and others (Francis Hasan and Wu 2015). More
precisely, corporate governance includes corporate practices to meet the objectives of the
companies. It needs to be mentioned that effective corporate governance improves the
profitability of the companies by ensuring the investments in profitable projects. However,
after the occurrence of certain high-profile corporate scandals, it has become proved that poor
corporate governance can lead towards the collapse of the businesses. On the other hand, the
presence of better government helps in implementing effective internal control which can
lead to the development and implementation of effective financial reporting (Vo and Nguyen
2014). For this reason, this research will shed light on the fact that how corporate governance
can be helpful in accelerating the performance of the companies. At the same time, this
research will also shows that how the better utilization of corporate governance assists the
companies in performing at a consistent level (Vo and Nguyen 2014).
Research Objectives
It needs to be mentioned that this research will be conducted for the achievement of
certain objectives and these objectives are mentioned below:
 To measure the impact or importance of corporate governance practices on the
financial performance of the companies
 To measure the fact that to which degree corporate governance influences the
performance of the business organizations