The role of good institutional governance in the financial performance of companies "Kuwait as a model"

Abstract

The present study aims at revealing extent of impact of principles of governance in improving financial performance indicators of companies enlisted in Kuwaiti market. The study has developed a set of hypotheses and models to test them and arrived at following findings: The first condition of governance, the ownership of managers, is least applied in study sample. The banking sector is most applying to principles of governance although it is not statistically significant. The study also finds that market value added indicator and rate of return contribute in improving market value added. As for impact of governance on rate of return, study does not find a statistically significant relationship, and finds that there is an impact of governance on improving operational performance.