Abstract:

The study's primary aim is to investigate the impact of various corporate governance mechanisms and corporate governance indexes on the performance of FTSE 100 non-financial companies. The data is collected from 74 non-financial companies from 2003 to 2018 for the study. Various analytical tools are used for the data analysis, including descriptive analysis, correlation, and multiple regression analysis.

The fixed effect model is used to explore the impact of various CG mechanisms on performance. The results for CG mechanisms have shown that Tobin Q has a positive relationship with CEO duality and board diversity and a negative relationship with board size. Board independence and board diversity positively correlate with return on assets and have a negative relationship with board size.

The regression model is also used to explore the impact of three corporate governance indexes on firm performance. A positive relationship exists for three CG indexes with Tobin Q and returns on assets. It can be stated that a positive relationship exists between the three CG indexes and the performance of UK companies.

Please choose your submission type: Full Paper

Primary Track: Corporate Governance

Keywords: Self-Governance and Internal Corporate Governance Mechanisms ,External Corporate Governance Mechanisms ,Corporate Governance in the private sector, including family businesses

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Mr. Asif Sadiq