CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE ANALYSIS: AN EMPIRICAL STUDY
DOI: https://doi.org/10.65725/JCMCE/2/1/002
JOURNAL OF CONTEMPORARY TRENDS IN MANAGEMENT, COMMERCE AND ECONOMICS (JCMCE) 
ISSN: 3108-3501
Volume 1 Issue 1, Jan-Mar 2026

Abstract:
Corporate governance plays a crucial role in enhancing organizational transparency, accountability, and long-term financial sustainability. This study examines the relationship between corporate governance practices and financial performance of firms across selected sectors. Using a sample of 100 firms, the study evaluates governance indicators such as board independence, audit committee effectiveness, CEO duality, and disclosure practices against financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Profit Margin. The study employs correlation and regression analysis to determine the strength of association. The findings reveal a positive and statistically significant relationship between strong corporate governance mechanisms and improved financial performance. The study contributes to policymakers, investors, and corporate leaders by emphasizing governance reforms as a driver of sustainable profitability.

Authors: Dr. Viji R, Prof. (Dr.) Vellayan Srinivasan and Dr.V.O.Kavitha

Keywords: Corporate Governance, Financial Performance, ROA, ROE, Board Structure, Transparency.