The impact of corporate governance on firm perfomance: a case of CAC 40 Firms

Abstract

There are several elements in business management that help increase financial efficiency, market positioning and overall firm performance which leads to generate confidence among investors, customers, suppliers and other stakeholders. One of these elements is corporate governance which covers the relationships between directors, the board, its shareholders and all those interested in the firm’s performance and therefore provides the necessary structure to define and execute the strategic objectives of the company as well as the control exercised over said execution. This study presents an assessment model based on supervisory board, investor relations, management team, and disclosure of information and analyses the relationship between different board systems, corporate governance and its characteristics with firm’s performance through the financial results of CAC 40 Firms.