THE IMPACT OF CORPORATE GOVERNANCE CHARACTERISTICS ON FINANCIAL PERFORMANCE: AN INTERNATIONAL ANALYSIS

Authors : Erol Geçici

Pages : 643-680

Doi:10.33723/rs.1788890

View : 171 | Download : 267

Publication Date : 2025-10-25

Article Type : Research Paper

Abstract :This study aims to examine the effects of corporate governance characteristics on financial performance. The analysis was conducted on a sample of 569 firms and 4,283 firm-year observations covering the period 2016–2023, covering 32 countries. Return on assets (ROA) and Tobin\\\'s Q were used as financial performance indicators. Board size, gender diversity, board-specific skill, Board members’ affiliations, audit committee independence, and the proportion of non-executive members on the audit committee were included in the model as independent variables. In contrast, firm size, leverage ratio, and firm age were treated as control variables. Panel data regression analysis results indicate that gender diversity on boards has a positive and significant effect on both ROA and Tobin\\\'s Q. The independence of the audit committee has a negative and significant relationship with ROA. Other variables have no significant effect on financial performance. The study reveals that the structure of the board of directors and the characteristics of the audit committee play a decisive role in shaping firm performance and that these mechanisms can have divergent effects on different financial performance indicators. These findings provide new empirical evidence to the literature that comparatively examines the effects of board dynamics on financial performance in the context of developed and developing countries.
Keywords : Kurumsal Yönetim, Finansal Performans, Yönetim Kurulu, Cinsiyet Çeşitliliği, Tobin Q

ORIGINAL ARTICLE URL