Corporate Governance Means the Process and Structures Used to Direct and Manage the Business and Affairs of the Corporation with the Objective of Enhancing Shareholder Value; Which Includes Ensuring the Financial
11/19/2012
Due Date: 19th Nov 2012
Lecturer’s Name: NGA ELSIE
Table of Contents 1.0 Introduction 2 2.0 Theoretical Framework 3 2.1 The Board 3 2.2 External Auditors 5 3.0 Literature review 7 3.1 Introduction 7 3.2 Board Size 7 3.3 Audit Quality 8 3.4 Similar and differences 9 4.0 Methodology 10 4.1 Sample selection 10 4.2 Data collection 10 4.3 Board size 11 4.4Audit Quality 11 4.5 Return 0n Assets (ROA) 12 5.0 Analysis and Findings 13 5.1 Descriptive Statistics 13 Figure 1 13 5.2 Discussion of regression results 14 Figure 2 14 5.3 Significant of Study 15 Figure 3 15 6.0 Conclusion 16 7.0 References 17
1.0 Introduction
Corporate governance means the process and structures used to direct and manage the business and affairs of the corporation with the objective of enhancing shareholder value; which includes ensuring the financial viability of the business (MCCG, 2012). Previous researches have attributed corporate failures to lack of compliance with the corporate governance code and Good firm performance with best practices of corporate governance. According to Kumudini.H (2011), the Cadbury report (1992) suggests that corporate governance mechanism such as board size, board structure, CEO and chairman duality and Audit quality could result in improved firm performance. The literatures provide that Corporate Governance leads to improved corporate and financial performance because it serves as an effective monitoring tool. Some study such as Coleman (2007) suggests that corporate governance variables such as Board size determines the ability of the board to make quick decisions and audit quality affects the quality and accuracy of the financial statements.
The primary objective of this report is to assess the relationship p between corporate governance and firm performance using two independent variables. The secondary objectives are to examine the annual report of thirty listed companies in
Due Date: 19th Nov 2012
Lecturer’s Name: NGA ELSIE
Table of Contents 1.0 Introduction 2 2.0 Theoretical Framework 3 2.1 The Board 3 2.2 External Auditors 5 3.0 Literature review 7 3.1 Introduction 7 3.2 Board Size 7 3.3 Audit Quality 8 3.4 Similar and differences 9 4.0 Methodology 10 4.1 Sample selection 10 4.2 Data collection 10 4.3 Board size 11 4.4Audit Quality 11 4.5 Return 0n Assets (ROA) 12 5.0 Analysis and Findings 13 5.1 Descriptive Statistics 13 Figure 1 13 5.2 Discussion of regression results 14 Figure 2 14 5.3 Significant of Study 15 Figure 3 15 6.0 Conclusion 16 7.0 References 17
1.0 Introduction
Corporate governance means the process and structures used to direct and manage the business and affairs of the corporation with the objective of enhancing shareholder value; which includes ensuring the financial viability of the business (MCCG, 2012). Previous researches have attributed corporate failures to lack of compliance with the corporate governance code and Good firm performance with best practices of corporate governance. According to Kumudini.H (2011), the Cadbury report (1992) suggests that corporate governance mechanism such as board size, board structure, CEO and chairman duality and Audit quality could result in improved firm performance. The literatures provide that Corporate Governance leads to improved corporate and financial performance because it serves as an effective monitoring tool. Some study such as Coleman (2007) suggests that corporate governance variables such as Board size determines the ability of the board to make quick decisions and audit quality affects the quality and accuracy of the financial statements.
The primary objective of this report is to assess the relationship p between corporate governance and firm performance using two independent variables. The secondary objectives are to examine the annual report of thirty listed companies in
References: * Masood Fooladi.C (2011) “Corporate Governance and Firm Performance” [Pdf] Singapore: IACSIT Press. Available at: http://www.ipedr.com/vol10/91-S10053.pdf [Accessed 14th Nov 2012]