A meta-analysis of corporate governance and firm performance

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Thi Thanh Binh Dao ORCID logo, Thu Tra Nguyen


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This research provides a systematic picture on the topic of “How corporate governance influences on firm performance?” through the application of meta-analysis on over 251 studies covering 24,867 businesses of 37 distinguished published papers. Using meta-analysis, by proceeding HOMA procedure, it is statistically evidenced that better corporate governance index and more board independence significantly enhance firm performance. By contrast, business’ financial value would be harmed as raise management shares proportion. Not only providing a general relationship direction, the paper also contributes an insight of potential sources of heterogeneity among collected samples as endogeneity problems; and selection of financial performance base. Moreover, significant changes through the sampling period are investigated in the connection of business’ worth and board size, board independence (declining trend); state ownership and institutional ownership (rising tendency).

Keywords: Corporate Governance, Meta-Analysis, HOMA Procedures, MARA Procedures

Authors’ individual contribution: Conceptualization – D.T.T.B.; Methodology – N.T.T; Formal Analysis – N.T.T.; Writing – Original Draft – N.T.T.; Writing – Review & Editing – D.T.T.B.; Supervision – D.T.T.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C21, C23, G34, G32, L25

Received: 18.01.2020
Accepted: 19.03.2020
Published online: 27.03.2020

How to cite this paper: Dao, B. T. T., & Nguyen Tra, T. (2020). A meta-analysis of corporate governance and firm performance. Journal of Governance & Regulation, 9(1), 18-34. https://doi.org/10.22495/jgrv9i1art2