Vol. 19, N°4 (2024)

78

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The impact of corporate governance mechanisms on financial performance: evidence from S&P 500 listed firms

Résumé

The purpose of this papaer is to study the impact of CEO characteristics and board of directors' traits on corporate financial performance. The study sample covers 366 U.S. companies listed on the S&P 500 over the period 2005-2022. Specifically, we explore two CEO attributes: CEO compensation and CEO duality. As for the board of directors' characteristics, we focus on board independence, gender diversity, directors' specialized expertise, the frequency of board meetings, and the existence of a CSR committee. The results show that some governance practices including the dual role of management, gender diversity on the board, and the presence of a CSR committee, can enhance financial performance. Conversely, elements such us board independence and high CEO compensation negatively affect performance. Additionally, some factors for example board meeting frequency and the importance of specific skills on the board are not significant.

Comment citer cet article

Soumaya Abbassi & Siwar Ellouz (2024), " The impact of corporate governance mechanisms on financial performance: evidence from S&P 500 listed firms", International Journal of Management And Technologies, Vol.19, N°4, pp: 100-125