Corporate governance is an inevitable problem to a company. It discusses the response rate and demographics of the respondents interviewed. Just like in the literature reviewed in chapter two, the findings show that corporate governance is closely related with a firm’s performance. What is the relationship between corporate governance and financial performance? Desk research enabled the researcher to understand the current state of knowledge in this field and specific issues that needed further investigations. In this chapter, the focus will be to conduct analysis to respond to the research objectives and hypotheses that were developed in the previous chapters. It holds the view that knowledge can only be considered factual and trustworthy if it is gained through senses and measurements (Information Resources Management Association, 2017). The board members may end up making mistakes that should be made by the mangers. The researcher conducted both qualitative and quantitative analysis. It was possible to find Apple’s market value within the same period as shown in the first column of table 2 below. Global Business and Management Research: An International Journal, 7(2), 28-36. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Simple random sampling is effective in ensuring that personal bias is eliminated when selecting participants (Walliman, 2016). According to Patra and De (2014), the top management unit has to understand the fact that the presence of the firm in a given market affects various entities. Web. There was an attempt to ensure that at least one third of either gender was represented in the research. (Eds.). The instrument had two main sections. Chapter 3 provided a detailed explanation of the methods used to collect and analyse data from respondents. Abstract. The aim of this research is to determine the impact of corporate governance on a firm’s performance. The next step is to conduct an observation, which involves collection of primary data from various sources. The study had some limitations discussed in chapter 3 of the paper, time available for the study, geographical barrier, and inability of some sampled individuals to respond to the questions provided within the right time were the main limitations. Research in Business and Management, 4(2), 1-12. As such, Apple Inc. was used as an appropriate case study because of ease with which its data can be found and the fact that it operates in China. When the aim and objectives have been defined, the next step is to develop questions that would help in answering the questions. Some of these firms employ a huge number of people and it is in the interest of the government and the community that it remains operational despite the challenges it may face. Corporate Governance Impacts on Firm Performance. In this study, the researcher used three main strategies to collect the needed data for the study. However, the limited time meant that information could only be obtained from a manageable sample. Content of recommendations There are two aspects to writing decision-making recommendations: content and style. The research questions developed when developed during the literature review stage will help in defining the nature of data that should be collected from participants. The study shoes that board of directors should always be committed to achieving a firm’s vision. Primary data was obtained from a sample of respondents as explained in the previous chapter. Research methods for political science: Quantitative and qualitative methods (2nd ed.). The researcher used both primary and secondary sources of data. This investigation will have practical benefits to the corporate managers by defining what they need to do to achieve organisational goals and objectives. Corporate governance has a direct impact on the performance of a firm. International Journal of Economics and Finance, 6(6), 1-13. As explained above, there were six objectives set in this project. Patra, R., & De, K. (2014). Over 10 million scientific documents at your fingertips. It is evident that majority of the participants were over 45 years. The study will outline how different principles of management affect the performance of a company in different ways. As such, it holds that one should embrace scientific methods when conducting research. It encompasses the mechanisms by which companies, and those in control, are held to account.”1 Such a subjective approach of conducting a research minimises the ability to gather accurate facts that explains a given phenomenon. (a) Introduction Effective corporate governance mechanism, professional and ethical board of directors and senior management, proper internal control system and sound legal system and regulatory framework are the conditions leading to a successful capital market. Acceptance of the set hypotheses will confirm the validity of the theory or a popularly held belief. Employees expect the firm to provide a good workplace environment and competitive salaries. The concept of corporate governance is becoming increasingly important in the modern business environment. The researcher considered it appropriate to use Tobon’s Q ratio to determine how corporate governance affect a firm’s performance in the market. Deducting reasoning is a common research approach where a researcher is expected to start by defining a theory upon which the study will be based. The information obtained from these sources not only helps in forming the background of the study but also enables a researcher to identify knowledge gaps in a given field. The aim of corporate governance is to take good business ethics. It will also identify dangerous practices that corporate managers should avoid to ensure that the needed long-term success is realised. The 2008 global economic recession clearly demonstrated the significance of large corporation in a given economy. It was a clear indication that governments could no longer afford to let firms operate without proper guidelines that can protect interests of different stakeholders. It was imperative to conduct a detailed study on corporate governance, due to the worldwide financial scandals and others much closer to home, such as the Satyam case, which have rocked the corporate world across the globe. Unfortunately, the geographical barrier and the limited time within which the study had to be completed made it impossible to conduct face-to-face interviews. In many cases, they try to look for facts that would justify what they already believe in when investigating an issue. IvyPanda, 8 Dec. 2020, ivypanda.com/essays/corporate-governance-impacts-on-firm-performance/. ⏰ Let's see if we can help you! It took five weeks to collect primary data online from the sampled respondents. We use cookies to give you the best experience possible. Dadhich, M. A. The economy of a country is defined by the productivity of the local companies (Choi, Jeong, & Lee, 2014). Card, A. Those who were opposed to this arrangement argued that it gives the CEO too much power that can be abused for personal gains. The company’s share price has been on the rise consistently because of the effective management strategies employed by the management. Such problems are common among new firms with weak brands, which are yet to gain popularity in the market. Managing large companies in the modern competitive business environment poses several challenges. The government must be paid the necessary tax as regularly as possible. Conducting an online survey meant that the researcher did not necessarily have to travel to China to collect the needed data. To provide practical recommendations as to the improvement of corporate governance. Such interests might deny a firm resources needed for research and development.”, Respondent 7 said, “It is important to balance the interest of different stakeholders in corporate governance to ensure that the firm is protected from unnecessary expenditure.”. He or she is not expected to influence subjects in any way and personal opinion is not expected to define conclusion and recommendations made at the end of the study. A sample size of 100 participants was considered appropriate for the study. Kumar, S., & Bhaskar, P. K. (2014). The researcher also developed hypotheses based on the secondary data collected from books and journal articles. According to Kumaramangalam Birla, the principal objective of good corporate governance is to enhance shareholder value. Scientific investigation is based on information that is devoid of what an individual wants to believe. International Journal of Business Research, 13(1), 87-94. If you continue, we will assume that you agree to our The researcher used purposeful and simple random sampling methods to identify the needed participants in the study. ADVERTISEMENTS: Corporate governance means the idea of ensuring proper management of companies through the institutions and mechanisms available to the shareholder. When using qualitative analysis, it is possible to explain how good corporate governance can help in balancing the interest of these stakeholders to achieve growth and financial success. (2018). European Journal of Business and Innovation Research, 3(5), 25-48. China has numerous firms listed in their local stock exchange and it would not be easy to collect information from the entire population. CONCLUSION: The Kotak Committee recommendations addressed certain core issues in relation to corporate governance. Another aspect of corporate governance and ethical issues can be found among the most fundamental principles of the agency costs theory. The appropriateness of this method and the manner in which it helped realise the aim of the research is discussed in chapter 3 of this paper. Applied meta-analysis for social science research (2nd ed.). Unable to display preview. Two aspects to writing decision-making recommendations: Abbaszadegana, A., & Lee, )... Were requested to state whether they believe there is a direct impact on the other hand, analysis! Be easy to establish the company ’ s performance that needed further investigations the world to publish codes for governance. 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