Corporate governance mechanisms and firm performance : evidence from Greek manufacturing sector
Part of : MIBES Transactions : international journal ; Vol.1, No.1, 2007, pages 181-211
Issue:
Pages:
181-211
Abstract:
Corporate governance is a fairly new concept which has been put into practice because of the needs of companies to constantly perform better; and it is this need that has made corporate governance so necessary today. As a set of limitations which must be adhered to in order for a company or firm to reach its optimal performance, corporate governance is a process which ensures growth for a firm and the economy. This paper surveys research on corporate governance of listed manufacturing firms in Greece. A critical analysis based on the available literature is introduced, relatively whether the size of board of directors and ownership structure is related to firm performance. The necessary information for the analysis was collected using secondary data. The listed manufacturing Greek firms were selected based on criteria such as high development rate, high capitalization breadth, and a sufficient enforcement of the principles of corporate governance. The basic hypotheses to be tested were: i) companies that have an expanding Board of Directors have better internal control and thus they perform better than companies, which have a limited number of members in the Board of Directors, ii) firms which belong to an expanded group of shareholders perform better than those firms which belong to a small group of shareholders or are family owned. According to the findings of the research, we can not fully accept the two hypotheses, since some ratios are better in companies which implement the aforementioned corporate governance principles, while the remaining do not seem to present any particular difference due to the implemented principles of corporate governance.
Subject:
Subject (LC):
Keywords:
firm's performance, corporate governance, Greek manufacturing companies
Notes:
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