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Company Performance and Corporate Governance Mechanisms: A Multiple Linear Regression Analysis
Current Issue
Volume 5, 2018
Issue 4 (December)
Pages: 149-154   |   Vol. 5, No. 4, December 2018   |   Follow on         
Paper in PDF Downloads: 24   Since Oct. 26, 2018 Views: 193   Since Oct. 26, 2018
Authors
[1]
Kashfia Naz, Department of Business Administration, Bangladesh University, Dhaka, Bangladesh.
[2]
Mansura Nusrat, Department of Business Administration, Bangladesh University, Dhaka, Bangladesh.
Abstract
The study attempts to unearth the relative impact of corporate governance practices on company performance (financial) of different banks and financial institutions of Bangladesh. Data were collected using secondary source (annual report of the companies) and judgmental and convenience sampling were used to select the Banks and Financial institutions. The statistical tool SPSS is used to analyze the collected data. Multiple regression analysis is used to examine the relative dominance of selected independent variables (selected corporate governance practices) on the dependent variable (Firm’s performance). The study discovered no significant impact of Corporate Governance Practices on firms’ financial performances (ROA, ROE, NPAT, EPS), although hypothesized otherwise. Multiple regression analysis is used to examine the relative dominance of selected independent variables (selected corporate governance practices) on the dependent variable (Firm’s performance). The study discovered no significant impact of Corporate Governance Practices on firms’ financial performances (ROA, ROE, NPAT, EPS), although hypothesized otherwise. One of the paramount limitations of this study is the use of merely 32 listed companies from Dhaka Stock Exchange only. Thus, the future researchers are expected to prevent the causality of their studies through enlarging their respondents’ base and scope such as including all listed companies of Bangladesh.
Keywords
Corporate Governance, Firm Performance, Listed Companies, Net Profit After Tax, Bangladesh
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