The Effects of Corporate Governance on Economic Growth and Firm Performance

I will employ statistical tools to diagnose regression challenges and serial correlation. Part 2 Abstract Following the widespread corporate scandals and failures globally, there has been a changed interest regarding the impacts of corporate governance on business performance. In developed countries such as the United States and Great Britain among others, the research on corporate governance has been conducted extensively but relatively little studies are given in (country). The study employs agency model to investigate the relationship between the firm performance and corporate performance. Research questions Adegbite and Emmanuel (2015) disclose that board of directors is one of the most significant mechanisms of corporate governance. Nonetheless, Tanjung and Mardiani (2015) argued that, from the effective monitoring view, bigger stakeholders who pose large proportion of shares have the capacity and the motivation to exercise control and to oblige the management to take action, as a result, reduces conflict and increases shareholders wealth hence improving company performance.