Corporate Governance and Firm Performance: A Study of Sri Lankan Bank, Finance and Insurance Companies

Abstract

Corporate governance is a highly discussed topic which received the attention of corporate world during the last decade due to the paramount importance embodied within it for the company performance and stability. Basically corporate governance means the set of rules by which management of the company is directed and controlled. It attempts to ensure that managers and other insiders of an organization take measures or adopt mechanisms to safeguard the interest of stakeholders. With the global financial crisis which affected many of the world business giants, now companies are highly concerned to improve their corporate governance practices and therefore today researchers also have a great awareness to carry out researches in this area. However currently in Sri Lankan context less considerable of researches available in Corporate Governance. This study focuses on “Corporate Governance and Company Performance” considering all Bank, Finance and Insurance companies listed in Colombo Stock Exchange as at December 2014. Data will be analyzed using the data of financial year 2013/14 using SPSS statistical software and hypothesis will be tested by performing descriptive statistics, correlation analysis and regression analysis for collected data.