Corporate governance practices and firm performance

Abstract

Corporate governance received much attention during the last two decades owing to certain economic reforms in countries and accidents of economic history such as regional market crisis and large corporate debacles. The main objective of the study is to find out the significant difference between corporate governance practices on Firm performance. And the secondary objective is to suggest the listed manufacturing firms in Sri Lanka to get the efficiency in the firm performance through the best corporate governance practices. Twenty seven listed manufacturing firms listed in Colombo Stock Exchange were selected as sample for the periods 2007, 2008, 2009, 20J0 and 2011. Various statistical methods have been utilized to find out the significant difference between corporate governance practices on firm performance. Finding revealed that, there is no significant relationship between the firm performance among corporate governance practices as board leadership structure, board committees, and proportion of non executive directors. Researcher has suggested that, corporate governance practices should be reviewed in the systematic way to frame the best practices in the current Sri Lankan context.