ISO 9001:2015

INTERNATIONAL JOURNAL OF EDUCATION, MODERN MANAGEMENT, APPLIED SCIENCE & SOCIAL SCIENCE (IJEMMASSS) [ Vol. 8 | No. 3 (I) | July-September, 2026 ]

Does Good Corporate Governance Improve Financial Performance: A Systematic Literature Review

Riya Panwar & Dr. Vaishali Agrawal

This study investigates the impact of Corporate Governance on financial performance, identifying robust governance framework such as independent oversight, transparency and ethical leadership. The researcher used to systematic literature review approach analyze the study and conducted a qualitative systematic literature review of 96 research papers published between 2014 and 2026, incorporating both global and India-specific perspectives. The study reveals a significant impact of corporate governance on financial performance, driven by enhanced decision-making, reduced agency conflicts and increased stakeholder trust. This review also confirms that effective corporate governance practices are essential for balancing profitability with accountability, thereby fostering organizational stability and attractiveness to investors within the corporate sector.

  1. Maharani, A., Putri, Y. S. K., & Khairany, D. G. (2025). Optimizing corporate financial performance through good corporate governance and leverage: A literature review. Dinasti Accounting Review, 2(2), 87-93.
  2. Aishwarya Agrawal (2024) Corporate Law
  3. Mahmudi, B. (2024). Corporate governance mechanisms and financial performance: a systematic literature review in emerging markets. Management Studies and Business Journal (PRODUCTIVITY), 1(3), 270-285
  4. Zhang, C. (2024). Corporate governance, financial performance, and economic policy uncertainty. Evidence from emerging Asian economies. PloS one, 19(12), e0312292.
  5. Chalabi, R., & Jarraya, B. (2023). How corporate governance mechanisms improve the financial performance of shareholding companies. International Journal of Business & Management Studies, 4(06), 44-52
  6. Affes, W., & Jarboui, A. (2023). The impact of corporate governance on financial performance: a cross-sector study. International Journal of Disclosure and Governance, 1.
  7. Wadesango, N., Mhaka, C., & Mugona, B. (2020). Literature review of the effect of corporate governance on financial performance of commercial banks in a turbulent economic environment. Academy of Strategic Management Journal19(3), 1-14.
  8. Lungu, C. I., Mititean, P., Caraiani, C., & Constantinescu, D. (2020). A structured literature review of corporate governance and performance research within an emerging country setting. Journal of Accounting and Management Information Systems (JAMIS)19(4), 707-733.
  9. Li, H., Terjesen, S., & Umans, T. (2020). Corporate governance in entrepreneurial firms: a systematic review and research agenda. Small business economics54(1), 43-74.

DOI:

Article DOI:

DOI URL:


Download Full Paper:

Download