THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS

The main aim of listed firms is to establish good corporate governance measures along with increasing the financial performance of the firms in the process. One of the major concerns faced by organisations is the separation of ownership and control. To reduce conflicts of intertest between managers...

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Main Author: HARIHARAN, VARUN
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Online Access:https://eprints.nottingham.ac.uk/61573/
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author HARIHARAN, VARUN
author_facet HARIHARAN, VARUN
author_sort HARIHARAN, VARUN
building Nottingham Research Data Repository
collection Online Access
description The main aim of listed firms is to establish good corporate governance measures along with increasing the financial performance of the firms in the process. One of the major concerns faced by organisations is the separation of ownership and control. To reduce conflicts of intertest between managers and shareholders and increase financial performance, the board of directors play a crucial role. This research study has discussed the impact of corporate governance measures on firm financial performance in the case of UK listed retail firms. The literature review set out to examine the importance of corporate governance on firm financial performance along with intending to discover the relationship between board composition and firm performance. The literature review also attempted to analyse the impact of the proportion of non-executive directors on financial performance of firms in terms of gross profit and turnover. The discussion of the literature review was backed by other researchers who presented their perspectives on the research questions. In order to further investigate the research questions, the quantitative research approach was found to be the most suitable and the research philosophy of positivism was adopted. By using the fixed effect model, the results from the regression suggested that the null hypothesis of this research study has failed to be rejected. Further, findings from the correlation test discovered a weak, moderate relationship between board composition and firm financial performance. The results also portrayed that the control variables do not have any significant impact on the financial performance of firms.
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spelling nottingham-615732022-12-13T16:05:40Z https://eprints.nottingham.ac.uk/61573/ THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS HARIHARAN, VARUN The main aim of listed firms is to establish good corporate governance measures along with increasing the financial performance of the firms in the process. One of the major concerns faced by organisations is the separation of ownership and control. To reduce conflicts of intertest between managers and shareholders and increase financial performance, the board of directors play a crucial role. This research study has discussed the impact of corporate governance measures on firm financial performance in the case of UK listed retail firms. The literature review set out to examine the importance of corporate governance on firm financial performance along with intending to discover the relationship between board composition and firm performance. The literature review also attempted to analyse the impact of the proportion of non-executive directors on financial performance of firms in terms of gross profit and turnover. The discussion of the literature review was backed by other researchers who presented their perspectives on the research questions. In order to further investigate the research questions, the quantitative research approach was found to be the most suitable and the research philosophy of positivism was adopted. By using the fixed effect model, the results from the regression suggested that the null hypothesis of this research study has failed to be rejected. Further, findings from the correlation test discovered a weak, moderate relationship between board composition and firm financial performance. The results also portrayed that the control variables do not have any significant impact on the financial performance of firms. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/61573/1/20207960_BUSI4153_THE%20IMPACT%20OF%20CORPORATE%20GOVERNANCE%20ON%20FIRM%20FINANCIAL%20PERFORMANCE%20-%20A%20STUDY%20ON%20UK%20LISTED%20FIRMS.pdf HARIHARAN, VARUN (2020) THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS. [Dissertation (University of Nottingham only)]
spellingShingle HARIHARAN, VARUN
THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS
title THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS
title_full THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS
title_fullStr THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS
title_full_unstemmed THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS
title_short THE IMPACT OF CORPORATE GOVERNANCE ON FIRM FINANCIAL PERFORMANCE - A STUDY ON UK LISTED FIRMS
title_sort impact of corporate governance on firm financial performance - a study on uk listed firms
url https://eprints.nottingham.ac.uk/61573/