Performing

"Enhancing performance through humanising, modelling and measuring governance"

Improving Governance, Enhancing Performance

It was Paul Drucker who said, “If you can’t measure it, you can’t improve it.” 

 

This Governance Performance Indicia™ | govindicia™ assessment and governance model affords an organisation the ability to benchmark your own governance position, both against the model and against codes of corporate governance requirements.

 

A programme of improvement can then be designed and implemented on the specific areas identified by the assessment and in need of improvement.

 

This is not an exact science, as it will be dependent upon internal and unique aspects related to your business. However, as each of the components are tangible, this programme can put in place bespoke elements to focus on those aspects that are deemed to have the most significant influence on improving governance.

Perfomance Enhancement

Otten et al, 2004[18] demonstrated a positive relationship between stock returns and corporate governance.

Khanchel, I. 2007[19] showed statistically significant and positive associations between each governance index (exception to board index) and firm size, investment opportunities, intangible assets and directors and officers ownership.Furthermore, institutional ownership and external financing needs are positively related to each governance index considered.

Humera et al, 2011[20] investigated the relationship between corporate governance and firm performance of twenty firms listed at Karachi Stock Exchange. The result shows that firms with good corporate governance measures perform well, as compared to the firms having no or less corporate governance practices.

Malik 2016[21], found a strong positive relationship between corporate governance and firm performance.

[18] Otten et al., (2004), Empirical evidence on corporate governance in Europe: The effect on stock returns, firm value and performance. Journal of Asset Management Volume 5, Issue 2, pp 91–104

[19] Khanchel, I. (2007), "Corporate governance: measurement and determinant analysis", Managerial Auditing Journal, Vol. 22 No. 8, pp. 740-760.

[20] Humera K, et al., (2011). Corporate Governance and Firm Performance: A Case study of Karachi Stock Market. International Journal of Trade, Economics and Finance, Vol.2, No.1

[21] Malik, M. and Makhdoom, D. (2016), Does corporate governance beget firm performance in Fortune Global 500 companies?, Corporate Governance, Vol. 16 No. 4, pp. 747-764.

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"Enhancing performance 

through governance"

© 2020 by Perrin Carey®

Governance Performance Indicia™ and govindicia

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