Main Article Content
Abstract
Corporate governance plays a major role in macroeconomic stability and provides the appropriate environment for economic growth as well as society welfare. Good corporate governance practices are important in reducing risks for investors, attracting investment capital and enhancing performance of firms. The aim of this paper is to observe the relationship between corporate governance and firm performance in banking industries of Bangladesh. This study gave attention to nine variables i.e. Board Size, Board Composition, Board Ownership, Institutional Ownership, Foreign Ownership, Brand name of Audit firm, Quality of Audit Committee, Audit Committee Meeting and Gender are used to measure the corporate governance whereas return on assets is used to measure the firm’s performance. Fifteen (15) banking companies of Bangladesh representing the period of 2010 to 2015 were selected purposively used in this study. The descriptive analysis, correlation and multiple regression analysis were applied to test the impact of corporate governance on firm performance. The results showed that there were impacts of corporate governance on ROA. However, the study found a positive and also inverse relationship between the variables of corporate governance and firm’s performance.