Project Proposal: Corporate Governance and its Impact on Profitability

This project proposal investigates the impact of corporate governance on company profitability, aiming to determine the relationship between governance structures and organizational financial performance. The study focuses on examining corporate governance mechanisms, such as board size, the role of independent directors, and the impact of audit committees, to understand how these factors affect profitability. The research employs a descriptive design and positivism philosophy, utilizing online survey questionnaires distributed to a sample of 100 management-level professionals. Data collected will be analyzed using multiple regression analysis to assess the influence of corporate governance on profitability, with careful consideration given to ethical issues such as participant anonymity and data validity. The ultimate goal is to demonstrate how effective corporate governance can serve as a tool for enhancing organizational profitability.

Running head: PROJECT PROPOSAL
Project Proposal: Impact of Corporate Governance upon Company’s
Profitability
Student Name: [Please Fill]
Student ID: [Please Fill]
University Name: [Please Fill]

1PROJECT PROPOSAL
Table of Contents
Introduction................................................................................................................................2
Aims and Objectives of the project............................................................................................2
Research Questions....................................................................................................................3
Literature Review.......................................................................................................................3
Research plan.............................................................................................................................5
Research Philosophy..............................................................................................................5
Research Design.....................................................................................................................6
Population of the study...........................................................................................................7
Sample size and Sampling techniques...................................................................................7
Data collection method..........................................................................................................7
Data analysis technique..........................................................................................................7
Ethical considerations............................................................................................................8
Gantt chart schedule...............................................................................................................8
References..................................................................................................................................9

2PROJECT PROPOSAL
Introduction
Corporate Governance is defined as that process which is used by companies to
achieve proper direction and control of their business. This process is being used so that the
companies could be managed properly. Presently, the concept of Corporate Governance has
gained attention due to corporate failures in the global as well as domestic market. Corporate
Governance defines the relationship between management of a company, their boards and the
shareholders (Darko, Aribi & Uzonwanne, 2016). This concept is becoming a global issue
due to the growth of modern economies where a major role is being played by private sectors
for the growth process. From the past studies, it has been identified that poor corporate
structures result into risk that could occur as a threat for economy. It is evident that corporate
governance has positive impact on profitability of an organization. However, there are some
gaps which have to be covered to determine the use of corporate governance mechanisms for
enhancing organizational profitability.
Aims and Objectives of the project
This project is focused on investigating the impact that Corporate Governance have
on the company profitability. This project also aims at determining the relationship of
corporate governance with organizational profitability. In this study, the examination will be
done to demonstrate on the corporate governance mechanisms that affects the profitability of
companies and how those could be used to improve the organizational profitability.
The objectives that has been determined for achieving aim of the project are presented
as below:
 To determine the relation of board size with profitability of an organization.
 To investigate the impact and contribution of independent directors on
organization profitability.

3PROJECT PROPOSAL
 To measure the impact that Audit committee have on the profitability of an
organization.
Research Questions
The study is aimed at reflecting the use of corporate governance as a tool for
improving profitability of an organization hence, the research questions has been prepared as
below:
 How organizational profitability is related to corporate governance?
 How corporate governance affects the profitability of an organization?
 How the use of corporate governance as a tool will help to improve
profitability of an organization?
Literature Review
According to Amba (2014), Corporate Governance is rising as emerging area of
study for research and the previous studies demonstrate that it is being viewed by various
scholars from different perspectives. Corporate governance helps to enhance the operational
efficiency of organizations with the help of proper management and decision making
capabilities. According to Larcker and Tayan (2015), two different growth propelling
elements such as transparency as well as accountability in an organization can be promoted
with the help of corporate governance.
Simultaneously corporate Governance can also increase the operational effectiveness
and efficiency of the business organizations. All efficiently running organizations can again
promote stability of their operational system and thus support the commercial success in
terms of growth. This approach makes sure that all the associate stakeholders are
professionally and fairly treated by the company. In order to enhance the corporate growth
and sustainability due largely according to its capacity within a liberalized market economy

4PROJECT PROPOSAL
the corporate governance is capable of promoting both the domestic and foreign capital.
Black et al. (2015) stated that, accountability, fairness, responsibility and transparency can be
successfully promoted with the help of the corporate governance.
On the other hand, Filatotchev and Nakajima (2014) opined that, corporate
governance practice can promote the market liquidity and confidence of investors. In other
words, the issues of financial crime can also be completely resolved with the implementation
of corporate governance. It has been analyzed that, efficiency of corporate governance
structure is complete directed or linked to the profit performance and it has also vast potential
to govern capital formation with the help of tax revenue.
Overall it has been revealed that its application in the organizations can increase the
efficiency of the fund allocation, promote savings and thus not only the cost but also the
information access ability gets enhanced from the user’s perspectives. Based on the varied
circumstances different strategies for corporate governance are required to be adopted by the
organizational heads (Giannarakis, 2014). In different countries this approach is applied for
creating a balance among the project manager, stakeholders, creditors, suppliers and
consumers as well. This approach is also referred to as an insider model which helps to
generate corporate control.
The success and failure of any firm or organization is completely dependent on the
corporate governance method or approach that is followed by the company itself. Both the
inter-organizational and intra organizational conflicts can be completely minimized or
resolved with the help of the corporate governance activities. However, on the other hand,
Rozman (2017) argued that, if any organization fails to hold the balance between corporate
governance and financial performance then the entire operation and functional sustainability
of the organization will be intermittent. The ethical perspectives are also required to be

5PROJECT PROPOSAL
considered and maintained by the organizational executives while developing the
organizational aims and objectives. Most importantly based on the type and size of the
project that the organizations have undertaken, the governance theory should be followed.
According to Giannarakis (2014), the proper application of corporate governance
principles helps to enhance the profitability along with high returns on investment and
increase in competitiveness. It has been found that board of directors have an important role
to play in the performance of a firm so that desired profits could be achieved from their
business. Eccles, Ioannou and Serafeim (2014) also stated that if the principles of corporate
governance are being followed rigidly then it would lead to higher profit margins for the
company. It has also been identified that there is positive influence of corporate governance
on the organizational profitability.
Research plan
This section illustrates on the approach for executing the research project has been
presented that could be adopted to achieve the desired outcomes. The discussion on the
procedure that will be followed to acquire desired results from the research has been
illustrated in this section. The theories and concept of research methodology has been used to
prepare the research plan for this research project.
Research Philosophy
Typically, three types of philosophies are there which are used in research projects
that is Realism, Positivism and Interpretivism. The philosophy is an essential element in
research methodology as it provides path for carrying out the research. The research
philosophy has to be aligned properly to analyze the research topic as per the desired
requirements (Taylor, Bogdan & DeVault, 2015). Positivism philosophy helps to reveal the
desired outcomes in a scientific manner while Interpretivism is related to determining the

6PROJECT PROPOSAL
association of research topic with the business and management world. Realism is considered
as a mixed research philosophy that comprises of both the features of Positivism and
Interpretivism.
For this particular research project, Positivism will be suitable to analyze the topic
better and achieve desired outcomes. This philosophy is beneficial as the time for research is
limited and it will also provide support for data collection.
Research Design
For developing a suitable framework to carry out this research project, it is essential
that an appropriate research design have to be selected. The research design helps the
researcher to determine techniques or methods that have to be followed for achieving the
desired outcomes from the research. There are different types of design that could be adopted
to fulfill the desired objectives and goals of the research (Flick, 2015). Basically,
Exploratory, Explanatory and Descriptive design is being used to execute research projects.
The research design is used to identify and collect data on the research topic so that desired
outcomes could be achieved from the project. Exploratory design is suitable as it helps to
acquire different ideas and thoughts required for completing the research. Explanatory design
is suitable for describing the events, incidents or situations that are related to the research
topic (Dang & Pheng, 2015). While Descriptive design is related to analysis and detailed
evaluation of the concept related to the selected research topic.
For this particular research, it has been determined that Descriptive design will be
appropriate to acquire the desired results on the impact of Corporate Governance on
profitability of an organization. In this context, the other two research designs will be
discarded as those are not appropriate to achieve desired outcomes from the project and
support will could not be gained

7PROJECT PROPOSAL
Population of the study
Population is referred to the number of participants that will be directly or indirectly
involved in the project. The participants will be responsible for providing their views on the
selected research topic. The feedback from the participants will be examined with the help of
certain statistical analysis techniques to achieve desired outcomes from the project.
Sample size and Sampling techniques
The sample size that has been determined for the project is 100 which will comprise
of various people from the management level in different companies. The sampling technique
that has been selected for this particular research project is random sampling (McCusker &
Gunaydin, 2015). This means that the participants will be selected randomly from the people
being gathered for the acquiring their feedback or opinion on different aspects of the research
topic.
Data collection method
The data collection will be carried with the help of online survey questionnaires
which will be distributed among the chosen sample for this study. The participants will fill
out the survey questionnaire forms at their own convenience and data will be collected
through the responses to questions in the survey questionnaire.
Data analysis technique
This research is aimed at determining the impact of the Corporate Governance on the
profitability of organizations and the used of corporate governance mechanisms to enhance
organizational profitability. The data will be collected based on the concept of corporate
governance and its relationship with organizational profitability. The data collected through
online survey questionnaires will be used for analysis using statistical analysis tool that is

8PROJECT PROPOSAL
Multiple regression analysis. A regression model will be prepared for the data that will be
achieved as responses from the survey questionnaires.
Ethical considerations
The ethical issues that will be taken into consideration during execution of research
project are listed as below:
Involvement of the participants: The participants have to be encouraged to express
their views and opinions on the corporate governance structure in their company.
Anonymity of the participants: The information of the participants has to be kept
secure and confidential (Flick, 2015).
Validity of data: The data that will be collected should be validated to ensure desired
outcomes are achieved from the research.
Gantt chart schedule
Figure 1: Timeframe for the research project
(Source: Created by Author)

9PROJECT PROPOSAL
References
Amba, S. M. (2014). Corporate governance and firms’ financial performance. Journal of
Academic and Business Ethics, 8(1).
Black, B. S., Kim, W., Jang, H., & Park, K. S. (2015). How corporate governance affect firm
value? Evidence on a self-dealing channel from a natural experiment in
Korea. Journal of Banking & Finance, 51, 131-150.
Dang, G., & Pheng, L. S. (2015). Research methodology. In Infrastructure Investments in
Developing Economies (pp. 135-155). Springer, Singapore.
Darko, J., Aribi, Z. A., & Uzonwanne, G. C. (2016). Corporate governance: the impact of
director and board structure, ownership structure and corporate control on the
performance of listed companies on the Ghana stock exchange. Corporate
Governance, 16(2), 259-277.
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on
organizational processes and performance. Management Science, 60(11), 2835-2857.
Filatotchev, I., & Nakajima, C. (2014). Corporate governance, responsible managerial
behavior, and corporate social responsibility: Organizational efficiency versus
organizational legitimacy?. Academy of Management Perspectives, 28(3), 289-306.
Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Giannarakis, G. (2014). Corporate governance and financial characteristic effects on the
extent of corporate social responsibility disclosure. Social Responsibility
Journal, 10(4), 569-590.

10PROJECT PROPOSAL
Larcker, D., & Tayan, B. (2015). Corporate governance matters: A closer look at
organizational choices and their consequences. Pearson Education.
McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), 537-542.
Rozman, R. (2017). The organizational function of governance: Development, problems, and
possible changes. Management: journal of contemporary management issues, 5(2),
94-110.
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research
methods: A guidebook and resource. John Wiley & Sons.