A Study On The Relationship Between Corporate Governance And Market-Based Financial Performance

Abstract

Corporate governance is a fundamental mechanism that ensures accountability, transparency, and ethical management in organizations. This study examines the relationship between corporate governance practices and market-based financial performance. Using a descriptive research design based on secondary data, the study explores how governance variables such as board structure, ownership patterns, and disclosure practices influence market-based indicators like stock returns, market capitalization, and firm value. The findings reveal that effective corporate governance enhances investor confidence, reduces risk, and positively impacts market valuation. The study concludes that strong governance frameworks are essential for sustainable financial performance in competitive markets.