Does Corporate Governance impact company performance?

Abstract

During the last decades, the world is witnessing permanent changes in the business world and a continuous development of business models. During our literature review, we have noticed that over time, the relationship between shareholders, managers and the different partners of the company is taking a new form thanks to the different transformations of the regulations and laws that govern the economic sector and protect companies in all corners of the world, hence the emergence of the concept of Corporate Governance.

Our work below represents a synthesis of the literature review on Corporate Governance and Performance and the link between these two concepts. Our objective in this work is to review the theoretical foundations of the concepts and to look at the different studies that have been conducted on the subject. In a first step, we will describe how the concept of Corporate Governance has developed worldwide and in Morocco, we will detail the different theories related to the concepts, and in a second step, we will present the different studies that have analyzed the nature of the relationship between Governance and Performance.

Keywords: governance, performance, shareholders, executives, management

JEL Classification: G30, L25

Type of paper: Theoretical article