Conceptualization between corporate governance and firm financial performance

The objective of this paper is to systematically review the extant literature, and establish a conceptual relationship between the concept of corporate governance (by using the multi-dimensional index) and corporate performance. Ample research analyses have been presented during the recent years on the relationship between corporate governance and corporate performance in various countries and for number of periods. The present study explores, to be precise, the relationship between the corporate governance measured in terms of an index and the firm performance in the extant literature through a systematic literature review by adopting the PRISMA (Preferred news things for Systematic Reviews and Meta-Analysis) framework. The systematic review is particularly important, as it curtails any biases by adopting a scientific and transparent method that is replicable. Accordingly, a sample of fifty research papers, published from 1980 to 2020, have been utilized that are on corporate governance and corporate performance. The findings of this paper propose that superior governance in companies results in a positive relationship with corporate performance. governance in companies The findings of this paper also highlights the most cited papers that examines this relationship and the most cited journals with observed trends, which enables research scholars for their further studies. Moreover, this study supports practitioners and policymakers to understand a crucial standing point of the existing literature supported by evidence.