The Effect of Corporate Governance Proxies on Firm’s Financial Performance. an Empirical Analysis from Beirut Stock Exchange
Muhieddine Ramadan1, Farid Abdallah2

Manuscript received on 11 May 2019 | Revised Manuscript received on 19 May 2019 | Manuscript Published on 23 May 2019 | PP: 1653-1658 | Volume-7 Issue-6S5 April 2019 | Retrieval Number: F12940476S519/2019©BEIESP
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Abstract: Corporate governance, a system whose structure relies mainly on the firm’s direction and its contribution to the overall society. Effective corporate governance plays a key role in increasing the value equity holders through proper alignment of incentives among stockholders and management. Corporate governance utilizes several methods in pledging optimal profitability and ample Return on Investment for shareholders or investors. It also upholds transparency, corrective measures, defines responsibilities at the corporate level, which implicates the relationships between the company’s management, the executive board and the shareholders. In quintessence, the quality of corporate governance is a firm’s choice without an apparent external cause. If set correctly supported by adequate managerial incentives, shareholders’ wealth can be maximized through endorsement of growth opportunities and higher productivity. Investors carefully study the organization’s corporate governance to check its viability and to highlight the its strength. Corporate governance is essential in providing feedback to the potential investors, whereby positively perceived corporate governance yields and attracts more and more potential investors. It is imperative to study the relationship between corporate governance proxies and the value of a firm since corporate governance plays a significant role in improving the performance of a firm. This study empirically tests the relationship between Corporate Governance proxies and the firm’s financial performance in Beirut stock Exchange aiming to increase the enactments of corporate governance practices to support in maximizing firms’ values.
Keywords: Corporate Governance, Firm Value, Beirut Stock Exchange.
Scope of the Article: Financial and Scientific Applications of All Kind