A Conceptual Review of Corporate Governance and its Effect on Firm's Performance: Bangladesh Perspective

Abstract

Corporate governance.A concept referring to the ideal mode of ensuring Firm’s accountability to its stakeholders, has ascended to its current level of Importance owing to corporate level scandals in the large economies of the World; experience gained from which has brought some positive changes in The less developed economies - changes that are pro active and are aimed Of enhancing corporate responsibility and performance. The objective of This study is to review this concept as is being practiced, the problems being faced, the schools of thought, its implication in firm valuation and Performance and lastly, to see its relevance in the context of Bangladesh, Where the listed firms are mostly owned and managed by family members. Suggestions to improve corporate governance and accountability, in line with SEC guidelines have been to indicate an active board with well Proportioned executive vis-vis non-executive members, and also with Representatives from 01/ groups of shareholders; separation of the role of CEO and the chairperson; existence of board committees; changing audit firms periodically, etc. to name a few.