Concept Of Corporate Governance Research Articles

Shareholder and Stakeholder Theories. Understanding Corporate Governance Practice

The aim of the paper is to further understand corporate governance by looking at Shareholder theory and Stakeholder theory to improve corporate governance practices in companies and to enable achieving set objectives. A conceptual approach of examining the concepts of corporate governance, shareholder theory and stakeholder theory, their similarities and differences for corporate governance purposes. Secondary sources and reviewed journal articles that discussed concepts were selected and used for the study through Content analysis and use of empirical evidence. The stakeholders’ theory has been proven to promote an inclusive system, that benefits stakeholders in any business or company in a globalised environment. Using both theories from a corporate governance perspective alone without consideration for other areas of the corporation is a limitation of study. Discussion of the theories contribute to understanding of corporate governance practice by corporations and the study will provide guidance for related research in the near future.

Corporate Governance and Financial Performance of Reinsurance Corporations in Kenya

Financial performance of Reinsurance firms is important in any economy and financial performance plays significant role in the country’s economic welfare. This study sought to explore how financial performance of Reinsurance Corporation in Kenya is affected by the corporations’ corporate governance. The concept of corporate governance was measured in terms of board size, board Composition, board independence, and chief executive officer’s Duality. A population of seven (7) reinsurance companies with physical presence in Kenya was targeted for the study through casual research design. This study used secondary data, where data on board size, board Composition, board independence, Chief executive officer and Return on asset was gathered through review of published audited annual reports of the seven selected reinsurance Companies for the period of study 2013 to 2017 financial year. The research adopted regression analysis to establish the extent to which financial performance of reinsurance companies is influenced by the companies’ corporate governance practices. Corporate governance in regard to Chief Executive Officer duality, board independence, board composition, and board size was found to have a significant effect on the financial performance of reinsurance corporations in Kenya. Size of the board size was established to have a positive significant relationship with the corporations’ financial performance. A similar relationship was found to exist between composition of the corporations’ board of directors and their financial performance. Further, the study revealed a positive significant relationship between independence of the board and financial performance measures of Return on Assets. Following findings of the analyses, the study recommends the Reinsurance Corporations in Kenya to stick to the recommended board size, board composition, board independence and Chief Executive Officer duality.

Corporate Governance, Audit Quality, Family Ownership and Earnings Management

This study aimed to obtain empirical evidence regarding the influence of corporate governance and audit quality on earnings management measures, as well as their relationship with the effect of family ownership. Research on earnings management has been widely conducted, but research in family firms is still limited, while based on previous observational data, 95% of companies in Indonesia are family firms. In addition, the difference in the concept of corporate governance in developing countries compared to developed countries is crucial in relation to company supervision patterns. Earnings management practices carried out by company management can be caused by the occurrence of information asymmetry in which management as an agent has more information related to the company than the company owner. This information asymmetry is used by managers to mislead other parties with the aim of increasing their managerial career or compensation. Implementing the corporate governance mechanism is a way to reduce earnings management. Another factor affecting earnings quality is audit quality. This study took a sample of manufacturing companies listed on the Indonesian Stock Exchange during the 2017- 2018 period. 152 sample data were tested. This study used secondary data obtained from annual reports of companies listed on the Indonesian Stock Exchange. Moderated regression analysis (MRA) was used. Corporate governance had no effect on earnings management and audit quality had a significant effect on earnings management behavior. Family ownership was able to strengthen the effect of audit quality in determining earnings management actions.
 Keywords: corporate governance, audit quality, earnings management, family ownership

Paradigm shift in banking governance in the light of the digital transformation: a dual impact disciplinary and cognitive

For nearly four decades, we have been witnessing the development of the concept of corporate governance. This concept has evolved considerably since its appearance because of its multidisciplinary nature and the high diversity of its theoretical grids. There are two main theoretical approaches. The disciplinary and the cognitive approaches. Given the challenges and opportunities of digital transformation, and its inevitable impact on the bank's business model, it is natural that it also impacts on its governance. This impact can be analysed from the two dimensions of governance. First, a cognitive dimension, which concerns all the players in the governance system, particularly the board of directors. Then, a disciplinary dimension dictated by the radical transformation of the confidence relations (Board of Directors / managers) established by the blockchain technology which could call into question the notion of opportunism advocated by the agency theory as the basis of the disciplinary approach of governance. In this paper, we will explore from an unprecedented analysis the impact of digital transformation on banking governance. This analysis will focus on the two dimensions of governance: disciplinary and cognitive. Finally, an empirical study will be presented on the digital transformation at the level of Moroccan banks which refers to the cognitive aspects of governance.

Reconceptualizing the Concept of Corporate Governance and its Goals in People’s Credit Banks in Indonesia

This Article examines the concept of corporate governance and its goals in People’s Credit Banks (PCBs). In 2015, Indonesian Financial Services Authority (IFSA) issued two main regulations on corporate governance and risk management for People’s Credit Banks (PCBs). This investigation shows that in these two regulations ISFA simply defines corporate governance as the implementation of transparency, accountability, responsibility, independence and fairness (TARIF) principles by PCBs. Basically, such kind of conceptualization is not appropriate as it does not define the concept of corporate governance itself, but rather, it just reaffirms the general principles of good corporate governance. Meanwhile, IFSA does not clearly provide the goals of corporate governance in PCBs. It is recommended that IFSA should reconceptualize the definition of corporate governance by focusing more on the function of PBCs boards. Meanwhile, the goals of corporate governance in PCBs should deal more with the achievement of long-term success of PCBs.

The Corporate Governance Machine

The conventional view of corporate governance is that it is a neutral set of processes and practices that govern how a company is managed. We demonstrate that this view is profoundly mistaken: in the United States, corporate governance has become a “system” composed of an array of institutional players, with a powerful shareholderist orientation. Our original account of this “corporate governance machine” generates insights about the past, present, and future of corporate governance. As for the past, we show how the concept of corporate governance developed alongside the shareholder primacy movement. This relationship is reflected in the common refrain of “good governance” that pervades contemporary discourse and the maturation of corporate governance as an industry oriented toward serving shareholders and their interests. As for the present, our analysis explains why the corporate social responsibility movement transformed into shareholder value-oriented ESG, stakeholder capitalism became relegated to a new separate form of entity known as the benefit corporation, and public company boards of directors became homogenized across industries. As for the future, our analysis suggests that absent a major paradigm shift that would force multiple institutional gatekeepers to switch their orientation, advocacy pushing corporations to consider the interests of employees, communities, and the environment will likely fail, unless such effort is framed as advancing shareholder interests.

The Impact of Corporate Governance in the Internal Control System : A Field Study in the Iraqi Business Environment

This research aims to define the concept of corporate governance and clarify the role of its boards of directors in enhancing the effectiveness of the internal control system because it bears the ultimate responsibility for its design, implementation and evaluation ,Therefore, the research relied on the method of the descriptive and analytical approach to achieve the goal. The research sample consists of a number of employees working in the internal control departments in the corporates. The research relied on the questionnaire in collecting data from the sample, analyzing it and testing it according to its statistical approach. The study concluded that, according its statistical results, Improved performance depends on the sobriety of the internal control system based on a coherent corporate governance framework that contributes to good risk management by designing a regulatory structure that defines responsibilities and powers between the parties involved in operational processes. Accordingly, the study recommends determining the weakness and deficiency points in internal control systems’ mechanisms as well as developing and determining plans that focus on addressing this deficiency, developing performance, and obligating all corporates to define governance requirements and strive to implement it and act accordingly.

Corporate Governance In Palm Oil Companies In Aceh Province

Nowadays, companies are not only required to provide information on financial accountability but also about corporate performance related to social and environmental aspects in order to promote shareholder values and sustainable practices, which eventually lead to the concept of corporate governance. This study aims to discuss the implementation of corporate governance, in palm oil companies in Aceh Province. A qualitative research method is applied with an empirical juridical approach. Data were collected by interviewing respondents and analyzing corporate reports. The result found that the implementation of corporate governence by the companies through the availability of code of good corporate governance (GCG) and code of conduct. Although it does not necessarily guarantee the implementation applied properly, but it can show company commitment to run a good business. Some companies also implement corporate social and environmental responsibility in a different approach. However, some of the activities are actually not in accordance with existing regulations, but is only limited to activities that have no direct impact on community.

Conceptualization between corporate governance and firm financial performance

The objective of this paper is to systematically review the extant literature, and establish a conceptual relationship between the concept of corporate governance (by using the multi-dimensional index) and corporate performance. Ample research analyses have been presented during the recent years on the relationship between corporate governance and corporate performance in various countries and for number of periods. The present study explores, to be precise, the relationship between the corporate governance measured in terms of an index and the firm performance in the extant literature through a systematic literature review by adopting the PRISMA (Preferred news things for Systematic Reviews and Meta-Analysis) framework. The systematic review is particularly important, as it curtails any biases by adopting a scientific and transparent method that is replicable. Accordingly, a sample of fifty research papers, published from 1980 to 2020, have been utilized that are on corporate governance and corporate performance. The findings of this paper propose that superior governance in companies results in a positive relationship with corporate performance. governance in companies The findings of this paper also highlights the most cited papers that examines this relationship and the most cited journals with observed trends, which enables research scholars for their further studies. Moreover, this study supports practitioners and policymakers to understand a crucial standing point of the existing literature supported by evidence.

Characteristics of Shari’ah Governance and Incidence of Charity: A case of Pakistan

Characteristics of Shari’ah Governance and Incidence of Charity: A case of Pakistan There are several studies which have evidenced the role of Shari’ah governance on the profitability of Islamic banks for different countries in different data setup. The main purpose of Shari’ah governance is derived from the concept of corporate governance to avoid any non-compliant transactions and book charity against any non- compliant income. There are two kinds of Shari’ah supervisory boards. First is the proactive type that follows the rule of ‘Hisba’ which restricts any non-compliant transaction before it happens. The second type is reactive which detects and reacts to the non-compliant transactions following the Islamic legal system when they happen. The first type would conclude to a reduction in the incidence of charity transactions. In contrast, the second type would conclude to increase in the incidence of charity transaction. The objective of this study is to explore whether the Shari’ah governance of Islamic banks of Pakistan is jointly proactive or reactive. This study is deductive and uses quantitative methods. This study builds an unbalanced panel data of full-fledged Islamic banks of Pakistan using the available data from financial statements. This study is one of its kinds to see the nature of Shari’ah governance based on empirical patterns using Panel FGLS model. The results show that board size, board expertise, and reputation are the reactive factors while the others are proactive factors. Keywords: Shari’ah Supervisory Board, Panel Data Analysis, Shari’ah Disclosure, Shari’ah Controls.

Good Corporate Governance Model in Indonesian Islamic Banking

<p>This study aims to examine the concept and implementation of Good Corporate Governance in Islamic banking in Indonesia. This research is a field research which is sharpened by the literature. This research is descriptive in nature, seeks to examine GCG policies and find ideas to strengthen regulations in compliance with sharia aspects and describes the implementation of GCG in Islamic banking in Indonesia. The method used in data analysis is a qualitative method, namely by presenting it in the form of descriptions and concepts. The performance of Islamic bank management, namely the implementation of GCG consisting of Transparency (Openness), Accountability, Responsibility, Professionalism, Independence, and Fairness, as well as being committed to Sharia Compliance, However, the author only focuses on Sharia Compliance. Then the assessment is carried out periodically and continuously and efforts are made so that it can be carried out properly in accordance with applicable regulations. This research focuses more on the concept and implementation of GCG in Islamic banking.<strong></strong></p><p><strong><em>Keywords:</em></strong><em> <strong>Good Corporate Governance (GCG), Sharia Bank Management Performance, Sharia Compliance.</strong></em></p>

Banking Governance in The Era of Digital Transformation

For nearly four decades, we have been witnessing the development of the concept of corporate governance. This concept has evolved considerably since its appearance because of its multidisciplinary nature and the high diversity of its theoretical grids. There are two main theoretical approaches. The disciplinary and cognitive approaches. Given the challenges and opportunities of digital transformation and its inevitable impact on the bank's business model, it is natural that it also impacts on its governance. This impact can be analyzed from the two dimensions of governance. First, a cognitive dimension, which concerns all the players in the governance system, particularly the board of directors. Then, a disciplinary dimension dictated by the radical transformation of the confidence relations (Board of Directors/managers) established by the blockchain technology which could call into question the notion of opportunism advocated by the agency theory as the basis of the disciplinary approach of governance. In this paper, we will explore from an unprecedented analysis of the impact of digital transformation on banking governance. This analysis will focus on the two dimensions of governance: disciplinary and cognitive. Finally, an empirical study will be presented on the digital transformation at the level of Moroccan banks which refers in particular to the cognitive aspects of governance. Keywords: corporate governance, disciplinary governance, cognitive governance, banking governance, digital transformation

Evolution of Corporate Governance in Emerging Economies – Indian Experience

Evolution of corporate governance in India from 1850 to 2020 provides significant insights into how discontinuities in the corporate Eco system impacts corporate governance practices. Although the concept of corporate governance and monitoring board emerged in 1972 in USA and spread across the globe in 1990s, after the Cadbury Committee in UK submitted its report, the issues on the governance of joint stock companies bothered regulators and academicians, and of course, minority shareholders, much before the emergence of the term corporate governance. India saw three significant structural discontinuities from 1850 to 2020. The period 1850 to 1947 was the colonial era when Indian business groups were emerging. The managing agency system emerged during that period as an institution to address the twin challenges of capital scarcity and scarcity of managerial skills. This facilitated industrialisation and also increased concentration of ownership. 1947 to 1991 was the period when the Indian government adopted the command economy framework and implemented the same through five-year plans and the licensing system. Public sector enterprises emerged as the dominating force in the Indian economy, although private sector was allowed to operate in those sectors which were not reserved for the state sector. Obtaining a license to start a new industry or expand the existing capacity was the key to the success of a business enterprise. Managing agency system continued until 1970. Some business groups consolidated their position because they could stand at the front of the queue for obtaining the licences. In the closed economy, they operated in the sellers' market. Licensing system and closed market resulted in unrelated diversification. The change in the social structure also resulted in division in business group due to the weakening of the joint family norms. Moreover, public sector development financial institutions (DFIs) acted on the behest of political bosses, often supporting the management resulting in weak corporate governance. In 1991, the Indian government opened the India economy and the country ushered into the era of market economy. Licensing system was dismantled. During the period between 1990 and 2020, the capital market developed, New entrepreneurs entered the corporate sector. Mutual fund industry achieved high growth. FDI and FPI increased very significantly, and start-ups emerged and grew. In the year 2000, for the first time, Security and Exchange Board of India (SEBI), the capital market regulator, introduced the Code of corporate governance. Indian business survived in the competitive market. The Indian corporate governance code revised number of times in the past two decade bench-marking with global best corporate governance practices. However, Indian corporate sector being dominated by the family business, the question 'how independent are independent directors' remains. With significant increase in the shareholding of FDI and FPI in top 200 companies, the average standard of corporate governance is improving. This essay examines the evolution of corporate governance and how discontinuities impacted the evolution process. It also predicts how and why the Indian corporate governance practices are expected to improve in coming days based on the emerging trends.

Muhasebe Meslek Mensuplarının Kurumsal Yönetim ile İlgili Kavramlara İlişkin Düşünceleri: Borsa İstanbul’da Bir Uygulama

Institutionalization started to be applied intensively after the financial crises all over the world or they were in an effort to be used. The importance of the concept of corporate governance is not only important in terms of net cash flows of businesses, but also in terms of attracting foreign investors to businesses and countries. A number of questions have been asked to the Business Corporate Governance Concepts in Borsa Istanbul, which has become very important in terms of Institutionalization in our country, and these studies have been analyzed and explained in detail in the SPPS 21 program. According to the results obtained from the business; It has been observed that the emphasis of the professional accountants to the concept of corporate governance, and the increased confidence in financial statements are transparency among corporate governance principles and direct accounting practices in public disclosure. In addition, it has been concluded that the applicability of the corporate management system is possible if the professional accountants act in accordance with the accounting principles and the received accounting standards.

Controlled remuneration. about the remuneration of senior officials and directors in state-owned companies

Controlled remuneration in state-owned companies, or those assisted by the state - giving them grant-in-aids -, is a matter that raises a certain sensibility. Therefore, there’s a need to combine - particularly in the corporate scope - the concept of transparency and good corporate governance. This sensitivity, which is increasingly demanded within private companies, shall be even more pronounced within the public business sector. The worldwide-known concept of Corporate Governance has been developing an essential leading role for years, which is directly linked to the desire of having companies with better functioning. In this sense, and as an example, the most recent expression of this can be found in the Law of Spain, exclusively with regard to the private sector, in the Act 21/2014, of 3rd December, by which the Spanish Capital Company Act is consolidated for the amelioration of corporate governance. Among the introduced amends, the most highlighted ones are notably those affecting the governing body. For instance, the duties of diligence and loyalty are specified and there’s a more detailed regulation of the liability regime of administration members regarding management, organization and functioning of the board of directors, enhancing its supervising role in terms of performance of directors with executive functions and, more specifically, establishing stricter controls on remuneration of senior official positions.

حوکمة الشرکات هیئة أسواق المال الکویتیة نموذجاً دراسة تأصیلیة فقهیة قانونیة

حوکمة الشرکات هيئة أسواق المال الکويتية نموذجا دراسة تأصيلية فقهية قانونية شهد أحمد عبد الله هادي تخصص الفقه وأصوله، قسم الدراسات الإسلامية، کلية التربية الأساسية، الکويت. البريد: sa.hadi@paaet.edu.kw الملخـــص: يتناول هذا البحث مفهوم الحوکمة وتطبيقاتها في إطار شرعي، من حيث بيان تکييفها الشرعي بشکل عام ومن ثم تأصيل قواعد الحوکمة الخاصة بهيئة أسواق المال الکويتية تأصيلا شرعيا مع بيان الطبيعة القانونية لحوکمة الشرکات، حيث إن حوکمة الشرکات من أهم الطفرات الإدارية التي تضمن قيام المؤسسة بأعبائها الإدارية بالکفاءة المطلوبة والتي تواکب التطورات المتلاحقة التي طرأت على الاقتصاد العالمي وانفتاح الأسواق من إطارها المحلي إلى إطار متعدد الجنسيات وکيانات عابرة للقارات، مما أدى إلى استحداث أنظمة وقواعد جديدة لإدارة هذه الشرکات، وبطبيعة الحال فقد برزت العديد من التساؤلات حول التکييف الفقهي والتأصيل الشرعي لهذه القواعد، وتأتي هذه الورقة للإجابة عن مدى توافق قواعد حوکمة هيئة أسواق المال الکويتية والقرارات والقوانين ذات العلاقة مع أحکام الشريعة الإسلامية، وقد اعتمدت في هذا البحث على المنهج الوصفي التحليلي القائم على عرض وبيان وتحليل الأطر القانونية والفقهية وما يعضدها من أدلة مرتبطة بمشکلة الدراسة وأهدافها. وقد توصلت هذه الورقة إلى إن نظام الحوکمة وقواعدها الخاصة بهيئة أسواق المال الکويتية هي في محصلتها تطبيق لمقاصد الشريعة الإسلامية والتي مناطها حفظ الضرورات الخمس ومنها حفظ المال، وبالتالي فإن هناک توافق بين القانون والقرارات المتعلقة بحوکمة الشرکات المعمول بها في دولة الکويت مع الشريعة، وتوصي الباحثة بدراسة تطبيقات قواعد حوکمة أسواق المال الکويتية دراسة شرعية تفصيلية في إطار دراسة شاملة لکافة أبواب اللائحة التنفيذية لهيئة أسواق المال بحيث يمکن تتبع مدى توافق المفاهيم النظرية والعملية مع أحکام الشريعة الإسلامية. Corporate Governance in the Kuwaiti Capital Markets Authority as a Model A Foundational, Juristic and Legal Study By: Shahd Ahmed Abdallah Hady Majored in Islamic Jurisprudence and its Fundamentals Department of Islamic Studies Faculty of Basic Education Kuwait E-mail: sa.hadi@paaet.edu.kw Abstract This research demonstrates the concept of corporate governance and its legal applications regarding its adaptability in general as well as establishing the rules concerned with the Kuwaiti Capital Markets Authority legitimately to show the legal nature of such corporate governance. Corporate governance is seen as one of the most important administrative mutations for having the potential to enable an organization to respond to its administrative burden efficiently in a way that keeps up with the successive developments of world economy and the contestability of markets i.e. turning them from being seized in a local sphere into being multinational and transcontinental. Therefore, new systems and rules have been created to run such companies. Accordingly, new inquiries about the juristic and legitimate adaptability of these rules have come to the ground. Hence, the research at hand closely examines the rules of corporate governance in the Kuwaiti Capital Markets Authority, decisions and the related laws to see if they are compatible with the provisions of the Islamic Sharia. The researcher has relied on the descriptive and analytical approach which is based upon displaying and analyzing the legal and juristic frameworks supported by enough evidence related to the main issue of this study and its objectives. Finally, the research has found out that the system of corporate governance and the rules concerned with the Kuwaiti Capital Markets Authority generally apply the objectives Islamic Sharia which observe the five necessities including property. As result, the research has considered the accord between the law and the decisions related to the corporate governance as applied in the State of Kuwait together with Sharia. In conclusion, the research recommends studying the applications of the rules concerned with the corporate governance in the Kuwaiti Capital Markets Authority, in details, from a jurisprudential perspective. The recommended study should include all the chapters of the internal statute of the Capital Markets Authority in order to trace the concord between the theoretical and practical concepts on the one hand, and the provisions of the Islamic Sharia on the other.

Does Managerial Ownership Moderate the Relationship between Corporate Social Responsibility Disclosure and Tax Aggressiveness?

Companies' disclosure is an important thing to do because it is one of the corporate governance concepts. The purpose of this study is first to investigate the influence of corporate social responsibility disclosure on corporate tax aggressiveness. Also, to prove the influence of managerial ownership as a moderating variable in the relationship between corporate social responsibility and tax aggressiveness. This study uses secondary data, namely financial statements and annual reports that have been published by companies on the Indonesia Stock Exchange and the company's website. This study's population are mining companies listed on the Indonesia Stock Exchange during the 2014-2018 period. Using the purposive sampling method, the total sample of this study is 30 data from 39 companies. Data were analyzed by descriptive analysis and multiple regression analysis. The results of this study indicate that Corporate social responsibility disclosure affects tax aggressiveness. And managerial ownership as a moderating variable affects the relationship between corporate social responsibility disclosure and tax aggressiveness. It is suggested that companies must pay attention to the CSR disclosure and ownership structure and their relationship with tax aggressiveness.

Corporate social responsibility as an element of good corporate governance a chronology of its historical and contemporary development

Despite many years of dedicated debates on the concepts of corporate social responsibility (CSR) and corporate governance, the question of whether CSR can now be regarded as part of good corporate governance due to underlying changes has not yet been adequately answered. This paper addresses this question by providing a systematic historical literature overview of the concept of CSR before considering it in the context of corporate governance. In this regard, the concept of corporate governance is outlined, and the theoretical basis and corresponding definitions are presented, followed by a comparison of the two concepts. A critical appraisal, predominantly from a European perspective, situates the concepts within the current context and identifies possible problem areas and/or particular challenges that could lead to a new characterisation of CSR as part of good corporate governance.

Is the Concept of Corporate Governance a Strategic Plan for Firms’ Optimum Capital Structure? Evidence from Manufacturing Companies

The aim of the article is to examine the relationship as well as measure the impact of corporate governance as a strategic plan on capital structure decision of top Bombay Stock Exchange-listed manufacturing firms in India. Panel regression analysis is employed to estimate the relationship and measure the impact of corporate governance, namely, size, meetings, independent director, women director and audit committee meetings, on the capital structure mix (debt–equity ratio) of the sample corporate, during a 10-year period of 2008–2017. The results of study reveal that the components of corporate governance, namely, size, board meetings, independent director, and audit committee meetings have a positive association with the capital structure variable (debt–equity ratio) of the sample manufacturing companies. However, there is a negative relationship between the control variables (ROCE and NWTA) and the dependent variable of the sample corporate. Overall, as per the study results, a statistically significant impact prevails on the capital structure, of corporate governance variables, taken as a whole. This article adds on to the existing study by highlighting a new prospect of relation and influence of corporate governance on capital structure decisions. The statistical findings of the study provide evidence to the corporate sector in deciding the optimum capital structure, affecting its costs and performance, and to the regulatory authorities in framing and implementing corporate governance mechanisms more effectively and efficiently for improving the economy of the country.

The Link between Board Structure, Audit, and Performance for Corporate Sustainability

The economic and social transformations, the bankruptcies recorded, and the financial crisis affecting all economies have increased the interest for the corporate governance concept. Our intention in this paper was to study the impact of corporate governance attributes on performance given the information published by the entities listed on five stock exchanges from Europe, namely the main market from Bucharest Stock Exchange (BSE) in Romania, the Athens Stock Exchange(ATHEX) main market in Greece, Financial Times Stock Exchange 100 Index (FTSE 100) from Great Britain, Spanish Stock Exchange 35 Index (IBEX 35) from Spain, and Warsaw Stock Exchange 20 Index (WIG 20) from Poland, between 2016–2018. Through mathematical modeling and multiple linear regression, we aimed to determine the extent to which corporate governance characteristics, firm characteristics, industry and stock market fixed effects, and random effects influence the performance of 226 entities included in our sample. The empirical findings revealed that CEO duality, the number of non-executive directors and women on board, audit committee, and audit opinion influenced performance measured by the Return on Assets (ROA) and Return on Equity (ROE) indicators. The ideas highlighted and the results obtained in this research contribute to the literature that analyzes the extent to which an effective governance determines the increase in performance, needed for a sustainable development.