| Abstract [eng] |
Corporate governance principles talk about relationships between managers, board and shareholders. High level of corporate governance helps companies to improve financial results, makes outside funding easier available when company needs additional capital and helps to lower the influence of possible risks that company faces due to bad management decisions. The need of lowering bad management decisions possibility and impact for a company makes good company management very important question nowadays. Since corporate governance principles should do impact for a good company management it is important to know what is the impact of corporate governance factors: board size, CEO duality, independent board members, etc. Object of paper – corporate governance factors impact on companies’ financial results. Aim of paper – to form a complex model and empirically evaluate corporate governance factors impact on companies’ financial results. Master thesis is made of 4 separate parts. In the first part of the master thesis is shown the importance of corporate governance practice for companies. Moreover, in this part of the paper there are made statement that in the most of analyzed scientific papers companies’ effectivity is mostly measured as ROE, ROA and Tobin`s Q ratios and because of that those ratios are used in further analysis. In the second part of the paper corporate governance factors impact on companies’ financial results in different regions and results is presented. Furthermore, in this part of the paper corporate governance ratios and in analyzed scientific papers used methods are presented. In the third part of the paper is methodology for complex corporate governance factors impact on companies’ financial results evaluation being formed. In the fourth part of the paper panel data empirical model for Scandinavian region companies is formed and the results for corporate governance impact on companies’ financial results are presented. Results of the paper are complex. The same corporate governance factors do different impact (positive and negative) for the Scandinavian companies’ financial results belonging to different sectors. Moreover, the number of statistically important ratios in the models for different sectors differs. Furthermore, corporate governance ratios impact for Scandinavian companies’ financial results depends on the way how effectiveness of the company is measured (ROE, ROA or Tobin`s Q). Women in board and board size does statistically significant and positive impact for companies’ financial results measured as Tobin`s Q and ROE ratios, CEO compensation does statistically significant and positive impact on companies’ effectiveness measured as Tobin`s Q, while independence of the board does statistically significant and positive impact for Scandinavian companies’ effectiveness Tobin`s Q, ROA and ROE. CEO duality does no statistically significant impact on Scandinavian companies’ effectiveness. |
