In Light of the New Code Does Corporate Governance Impact Performance of Bangladeshi Firms?
Date
2016-06
Student ID
Research Supervisor
Editor
Journal Title
North South Business Review
Volume
06
Issue
2
Journal Title
Journal ISSN
Volume Title
Abstract
This paper primarily addresses the gap in existing literature and strives to find a causal relationship between good governance and firm performance after the implementation of the new code in 2012 in Bangladesh market. The purpose of this study is to find out if firm performance, both accounting-based and market-based, is affected by the corporate governance factors in Bangladeshi public limited companies. Ordinary Least Square regression was applied to 106 companies listed in the Dhaka Stock Exchange (DSE) with Price/Earnings ratio, Return on Asset, and Return on Equity as the dependent performance variables and Board Size, Board Composition, Audit Committee Size, Composition and Grade as the independent governance variables. It was found out that good governance does not have any effect on the market performance of the companies. While for accounting-based performance the audit committee size and composition has significant impact on companies other than banks and non-bank financial institutions (NBFIs). Performances of banks and NBFIs had no significant impact due to governance variables
Description
Keywords
Citation
Department Name
Publisher
North South University