Open AccessCorporate Governance and Firm Performance: Evidence from Sri Lanka
Author(s) -
A. A. Azeez
Publication year - 2015
Publication title -
journal of finance and bank management
Language(s) - English
Resource type - Journals
eISSN - 2333-6072
pISSN - 2333-6064
DOI - 10.15640/jfbm.v3n1a16
Subject(s) - sri lanka , corporate governance , stock exchange , accounting , business , positive relationship , economics , finance , psychology , socioeconomics , tanzania , social psychology
This study has investigated the relationship between corporate governance and firm performance in Sri Lanka. Board Size, CEO duality, and proportion of nonexecutive directors are used as corporate governance variables and EPS, ROA, and ROE as measures of firm performance. Data are obtained from the annual reports of 100 listed companies in the Colombo Stock Exchange for the 2010-2012 financial years. Regression results indicate that board size is negatively associated with firm performance. This suggests that small boards are associated with higher firm performance, possibly through closely monitored management. Moreover, the results reveal that the separation of the two posts of CEO and chairman has a significant positive relationship with the firm performance. However, the presences of non-executive directors on the board are not associated with firm Performance of the listed companies in Sri Lanka.
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