Corporate Governance & Firm Performance

This book grew out of a study aimed at establishing the relationship and impact of corporate governance on firm performance using the Zimbabwean financial sector as the case study. The study used a time-varying score card to establish the corporate governance index of seven financial institutions registered on the Zimbabwe Stock Exchange. The study included a more complete set of governance mechanisms including firm ownership, board independence, shareholder activism, and the audit function effectiveness, availability of sub-committees and the effectiveness and liability of the governing board. The study established that, yes, the relationship between corporate governance and firm performance is positive. It also established that for a percentage change in corporate governance mechanism put in place by the firm over the years, firm performance changed by a higher margin. Amongst other recommendations, it was recommended that firms give enough platform to minority shareholders in their shareholder meetings and they must improve on accurate and timely information dissemination.

Autorentext

Campion Chiromba, MSc in Finance & Investments, National University of Science & Technology (NUST)and B/Com (Hons) Degree in Banking (NUST). Lecturer at Great Zimbabwe University (GZU), Zimbabwe.