Corporate governance and firm performance: an empirical evidence from Syria
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Researchers |
Zukaa Mardnly, Sulaiman Mouselli and Riad Abdulraouf |
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Published in |
International Journal of Islamic and Middle Eastern Finance and Management, Volume 11, Issue 4, 2018 |
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Abstract |
This study aims to examine the impact of aggregate and individual corporate governance provisions on firm performance on all firms listed at Damascus Securities Exchange (DSE) for the period between 2011 and 2015. In addition, it disentangles ownership structure provision to ownership concentration and foreign ownership and investigates which component of ownership structure stands behind the significance of ownership structure in explaining firm performance. The study uses multiple linear regression models to analyze the relationship between aggregate corporate governance index and its provisions and firm performance. This study finds that ownership structure is the only significant corporate governance provision in determining Syrian firms’ performance, as it loads positively and significantly on firm performance proxies (ROA and EPS). Moreover, the analysis of ownership structure items shows that foreign ownership is the main source of this positive and significant impact. This result is robust for both measures of firm performance and in the presence of political stability indicator. Key words: Syria, Firm performance, Corporate governance, Ownership structure, Foreign ownership. |
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