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IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE 1InstitutionCorporate Governance and Firm PerformanceStudent’s NameInstructor’s NameCourse Number14, February 2014
IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE 2Topic Chosen: Impact of Corporate Governance on Firm PerformanceThe chosen research topic is the impact of corporate governance on firm performance. This topic was chosen because of the increased interests that have been expressed towards corporate governance. Due to the fall of businesses in 2008 and the prevalent business scandals, corporate governance has become an important organizational aspect.
IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE 3AbstractThis research study focuses on the effect of corporate governance on organizational performance. In essence, it seeks to determine whether some of the aspects of corporate governance can affect the performance of the firm financially, socially and in terms of regulations. In particular, it considers the alignment of stakeholders' interests and sets out to determine whether this aspect affects the performance of the firm. After interviewing the respondents, it was indicated that the corporate governance has a crucial effect on the performance of a firm. In essence, corporate governance helps to align the interests of stakeholders by setting specific goals, using a hierarchical administration and offering incentives.In turn, the alignment of the stakeholders' interests increases teamwork, encourage collaboration and reduce the conflict. These three aspects are crucial since they increase the performance of thefirm financially, socially and in terms of regulations.Keywords: Stakeholders, corporate governance, alignment of interests, organizational performance.
IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE 4Outline1.0 Introduction1.1 Background of the Study1.2 Focus of the Study1.3 Research Problem1.4 Research Rationale1.5 Scope of Research1.6 Aims and Objectives1.6.1 Aim1.6.2 Objectives1.7 Research Questions1.8 Research Hypotheses2.0 Literature Review2.1 Corporate Governance2.2 Alignment of Stakeholders’ Interests2.3 Corporate Governance and Performance3.0 Data and Methodology3.1 Research Approach3.2 Research Strategy3.3 Source of Data3.4 Time Schedule and Frequency3.5 Population3.6 Sample Size and Sampling
IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE 53.7 Variables3.8 Theoretical Models3.9 Methodological Justification3.91 Possible Limitations4.0 Results5.0 Conclusion
IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE 61.0 Introduction1.1 Background of the StudyIn a nutshell, this research seeks to discuss how corporate governance affects firm performance with a special focus on alignment of stakeholders' interests. Essentially, corporate governance is the process by which the organization allocates different responsibilities and provides them with varying rights to facilitate daily operations (Aguilera & Jackson 2003). An organization has various stakeholders, including the managers, employees, creditors, customers, and shareholders among others (Augustine 2009). It incorporates the mechanisms that enable the