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Erschienen in:
Position of Sri Lankan Products in the Global Market: A Comparison of Brand Values Kapitel lesen Erstes Kapitel lesen

2021 | OriginalPaper | Buchkapitel

23. Compliance of Listed Companies with Codes of Corporate Governance and Impact on Corporate Performance: Evidence from Sri Lanka

verfasst von : D. H. S. W. Dissanayake, D. B. P. H. Dissabandara, A. R. Ajward

Erschienen in: New Horizons in Management, Leadership and Sustainability

Verlag: Springer International Publishing

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Abstract

The main objective of this study is to examine the nature and level of compliance with corporate governance best practices in Sri Lankan listed companies using a constructed corporate governance index (CGI) and to examine the relationship between corporate governance and corporate performance. In addition to the main objective, this study examines 18 subsamples in different sectors and identifies the differences in compliance level in the selected sectors. This is a quantitative study based on the annual reports of 133 public listed companies in Sri Lanka in 18 different sectors for the period 2009–2016. The constructed CGI covered five corporate governance categories: board of directors, shareholders, chief executive officer (CEO) and management, communication and disclosure, and stakeholders. The findings indicated that the mean compliance level of corporate governance in the study period was only 54.27 (out of 100), and there is a significant difference of mean compliance levels among the different sectors considered. The results also indicated a significant positive relationship between financial performance in terms of return on equity (ROE) and return on assets (ROA) with the level of compliance with corporate governance principles and a negative relationship with market performance in terms of Tobin’s Q with such principles. The analysis further revealed a positive relationship between the stakeholder subindex, the CEO and management subindex and the communication and disclosure subindex and corporate financial and market performance indicators. The findings of this study are expected to have significant policy implications.

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Metadaten
Titel
Compliance of Listed Companies with Codes of Corporate Governance and Impact on Corporate Performance: Evidence from Sri Lanka
verfasst von
D. H. S. W. Dissanayake
D. B. P. H. Dissabandara
A. R. Ajward
Copyright-Jahr
2021
Verlag
Springer International Publishing
Buch
New Horizons in Management, Leadership and Sustainability

Print ISBN: 978-3-030-62170-4

Electronic ISBN: 978-3-030-62171-1

Copyright-Jahr: 2021

DOI
https://doi.org/10.1007/978-3-030-62171-1_23

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