Corporate governance practices and comprehensive income

López-Quesada, Erika, Camacho-Miñano, María-del-Mar and Idowu, Samuel O. (2018) Corporate governance practices and comprehensive income. Corporate Governance: The international journal of business in society, 18 (3). pp. 462-477. ISSN 1472-0701

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Abstract / Description

Purpose
The purpose of this paper is to analyze the effect of corporate governance practices on firms’ financial performance, as measured by comprehensive income (CI).

Design/methodology/approach
Using a sample of 237 firms from the Standards & Poor (S&P) 500 index during the years 2004-2009, multivariate statistical analyses are conducted to confirm the authors’ main hypothesis.

Findings
The results indicate that having high levels of corporate governance culture has a positive impact on a measure of firms’ financial performance, namely, CI. Furthermore, they indicate a positive correlation between a higher percentage of external directors and financial performance, and a negative relationship between number of board meetings and financial performance.

Originality/value
The main contribution of this research is that good corporate governance strategies deliver superior financial performance for businesses in terms of CI. This serves as a method of value creation, which is the ultimate goal of a business. In addition to the use of CI as an indicator of financial performance, a unique measure of corporate governance level is tested.

Item Type:	Article
Additional Information:	From Crossref via Jisc Publications Router
Uncontrolled Keywords:	Corporate governance; financial performance, board of directors, outside directors, duality, board meetings, CEO compensation, comprehensive income
Subjects:	300 Social sciences > 330 Economics
Department:	Guildhall School of Business and Law
SWORD Depositor:	Pub Router
Depositing User:	Pub Router
Date Deposited:	16 Mar 2018 14:47
Last Modified:	15 Feb 2022 09:13
URI:	https://repository.londonmet.ac.uk/id/eprint/1353

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