Corporate governance and financial performance in an Australian context

Rebecca Brown and Tue Gørgens
Additional contact information
Rebecca Brown: Treasury, Government of Australia
Tue Gørgens: Research School of Social Sciences, Australian National University

No 2009-02, Treasury Working Papers from The Treasury, Australian Government

Abstract: The concept of corporate governance has attracted considerable attention, domestically and internationally, in recent years. Previous research, largely conducted using international data, has suggested that better governed firms outperform poorer governed firms in a number of key areas. This paper examines the relationship between a company’s adoption of the Australian Securities Exchange (ASX) Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations (ASX Corporate Governance Principles) and its financial performance in the areas of shareholder performance, operating performance and one year sales growth for the top 300 Australian listed companies. Our results suggest that companies demonstrating greater compliance with the ASX Corporate Governance Principles outperform less compliant companies in each of these three financial areas.

Keywords: corporate governance; financial performance; ASX (search for similar items in EconPapers)
JEL-codes: G00 G10 G30 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2009-03, Revised 2009-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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