Abstract
The significance of effective corporate governance cannot be overemphasized, since it directly affects the entire functioning of a firm. Corporate governance is a brand theory concerned with the alignment of management and shareholder interests. This paper examined the impact of corporate governance on corporate performance using the technological companies listed on the FTSE 250 London Stock Exchange. Board size, Board independence and CEO duality were used to measure corporate governance while Return on Assets were used to proxy corporate performance. Secondary data were obtained from literature reviewed, the companies’ annual reports and the London Stock Exchange website for a period of 5 years (2018 – 2022), to thoroughly examine the relationship between corporate governance and corporate performance. The findings revealed that board size and CEO duality have a positive impact on the performance of technological companies in the UK FTSE 250. However, Board independence showed a negative impact on the performance of the technological companies. Hence, we concluded that corporate governance is just one of the few ways of enhancing a company's performance due to its level of insignificance. From this, the study recommended that technological companies should assess their current board composition and consider appointing individuals with diverse backgrounds and skills. The focus should be on obtaining a balance that promotes innovation and informed decision-making without becoming unwieldy.
Original language | English |
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Article number | wseas-1771 |
Journal | WSEAS Transactions on Business and Economics |
Publication status | Accepted/In press - 31 Jan 2024 |
Keywords
- corporate governance
- board size
- CEO duality
- board independence
- corporate performance