Does corporate governance influence firm integrated performance?

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Nagalingam Nagendrakumar ORCID logo, Chathurini Kumarapperuma ORCID logo, Chathura Malinga ORCID logo, Kalpani Gayanthika, Nethmi Amanda, Ashini Perera

https://doi.org/10.22495/cocv20i2art11

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Abstract

The correlation of corporate governance (CG) with accounting and financial performance (AFP) is highly studied (Ismaeel & Soliman, 2022). However, the correlation of CG with marketing performance (MP) and logistic and supply chain performance (LSCP) is rare. Further, the correlation of CG with firm integrated performance (i.e., AFP, MP, and LSCP) is hard to see. Therefore, the present study explores the association and impact of CG with firm integrated performance (FIP). The study followed the deductive approach and adopted correlation and regression analysis techniques using the secondary data from 132 randomly selected cluster samples from 303 listed companies from the Colombo Stock Exchange (CSE). The study found that CG has a positive but weak relationship and a significant positive impact on the FIP. Thus, this study sheds light on the practical implication that managers must not solely depend on financial performance (FP) but concentrate on FIP when they make strategies for organizational performance and development. The study is original since it has proved that the synergy effect of AFP, MP, and LSCP is much higher than standing alone with CG.

Keywords: Corporate Governance, Firm Integrated Performance, Accounting and Finance Performance, Marketing Performance, Logistics and Supply Chain Performance

Authors’ individual contribution: Conceptualization — N.N.; Methodology — N.N. and C.K.; Software — K.G.; Validation — N.N.; Formal Analysis — N.N., C.K., and C.M.; Investigation — N.A. and A.P.; Resources — C.K.; Data Curation — N.N.; Writing — Original Draft — C.M., K.G., N.A., and A.P.; Writing — Review & Editing —N.N.; Visualization — C.M.; Supervision — N.N. and C.K.; Project Administration — C.K.

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

JEL Classification: G34, M31, M41

Received: 04.10.2022
Accepted: 31.01.2023
Published online: 02.02.2023

How to cite this paper: Nagendrakumar, N., Kumarapperuma, C., Malinga, C., Gayanthika, K., Amanda, N., & Perera, A. (2023). Does corporate governance influence firm integrated performance? Corporate Ownership & Control, 20(2), 138–145. https://doi.org/10.22495/cocv20i2art11