Corporate governance index and financial performance - Evidence from listed firms in Ho Chi Minh stock exchange

Abstract

The thesis checks whether there are existence of relationship between corporate governance index and firm performance of listed firms. The study used both accounting- based and market - based measurements for firm performance and ROA, ROE and Tobin’s Q are three proxies applied for this thesis. The thesis employed cross-sectional data by using OLS to investigate the interaction between corporate governance index and firm performance of all comapanies, except financial institutions that are listed in Ho Chi Minh Stock Exchange for the year of 2014. The empirical results shows that corporate governance index has positively statistical significant with all three measurements of firm performance. This findings will motivate stakeholders to improve corporate governance practices in comapnies as a way to obtain better firm performance.