TY - JOUR ID - 86689 TI - The Effect of Corporate Governance on Financial Performance: Evidence From a Shareholder-Oriented System JO - Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies) JA - IJMS LA - en SN - AU - Abdullah, Hariem AU - Tursoy, Turgut AD - Accounting Department, University of Sulaimani, Sulaimani, Kurdistan, Iraq AD - Head of Banking and Finance Department, Near East University, Nicosia, North Cyprus, Turkey Y1 - 2023 PY - 2023 VL - 16 IS - 1 SP - 79 EP - 95 KW - Corporate governance KW - Audit committee KW - Board of directors KW - Financial performance KW - IFRS KW - shareholder-oriented system DO - 10.22059/ijms.2022.321510.674798 N2 - Despite the vast literature, the relationship between corporate governance and firm performance is hotly debated in the research field of corporate finance. This study examined the effect of Corporate Governance (GC) on the performance of firms in non-financial sectors listed on the Frankfort Stock Exchange in Germany over the period 2002-2018. To this end, we measured firm performance based on accounting data, using ROA and ROE. The results provided evidence that the characteristics of the audit committee and board of directors have significant and negative effects on firm financial performance, whereas the effect of CEO duality is not statistically significant. Large board size could bring about the issue of deferred decision making by the board members in the insider-controlled CG system of Germany. Furthermore, IFRS adoption in 2005 was found to have a positive effect on firm performance. These results can raise considerable interest in managers and shareholders, precisely when they prioritize the financial performance of their companies. UR - https://ijms.ut.ac.ir/article_86689.html L1 - https://ijms.ut.ac.ir/article_86689_c175c83470634053f17bc8957cf6a5a1.pdf ER -