CORPORATE GOVERNANCE AND PERFORMANCE IN PZ

Abstract

The study examined the relationship between corporate governance and performance. The objective of the study was to examine board composition and diligence on organizational performance. Survey research design was adopted in this study. The population of study covers staff of PZ. The sample size selected is one hundred and ten (110) using the stratified random sampling. Primary data was used in this study and Chi-square statistical tool was used to analysed data. The empirical findings show that the adoption of good corporate governance practices enhances transparency of company’s operation, assures accountability and improve firm’s profitability. It also helps to protect the interest of the shareholders by aligning their interest with that or the managers. The results show that generally corporate governance has positive impact on the profitability. The factors of board size, management skills, CEO tenure, size and independence of audit committee, foreign and institutional ownership, dividend policy and annual general meeting, all have positive correlation with the performance of the organization.