Keywords: Corporate Governance (CG), ROA, ROE, EPS, Firm Performance, Board Effectiveness, Board of Directors, Audit Committee.


Well-managed corporate governance mechanisms play an important role in improving corporate performance. Good corporate governance is fundamental for a firm in different ways; it improves company image, increases shareholders' confidence, and reduces the risk of fraudulent activities. This research aims to investigate the relationship between corporate governance and firm performance in a sample of 58 companies listed on the Dhaka Stock Exchange (DSE) using the data of 2016-2021. For this objective, this study used a number of corporate governance indices, including board size, board independence, members of the audit committee, and board effectiveness. The impact of those indices has been analyzed on the performance indicators of a firm like EPS, ROA and ROE. In this research, firm size and leverage ratio serve as control variables. In addition, the influence of independent factors on dependent variables has been analyzed using multiple linear regression. From the regression, the study found that board independence is a solo factor that is significant on the firm performance and has a positive impact. This research also observed no statistically significant correlation between Board Size, Board Effectiveness, and Audit Committee on the firms’ performance.

JEL Classification Codes: A1, A30, C1, G17, Y8.

Author Biographies

Shaikh Masrick Hasan

Associate Professor, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

Sk. Alamgir Hossain

Assistant Professor, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

Roushanara Islam

Associate Professor, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

Md. Mahedi Hasan

Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh


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How to Cite
Hasan, S. M., Hossain, S. A., Islam, R., & Hasan, M. M. (2023). CORPORATE GOVERNANCE AND FIRMS’ PERFORMANCE: EVIDENCE FROM DHAKA STOCK EXCHANGE. Indian Journal of Finance and Banking, 13(1), 28-38.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper