Relationship between corporate governance and financial performance: evidence for colombian companies in the 2006-2013 period
Abstract
The attributes of a company’s corporate governance are quite important to its investors due to its relationship with financial performance. This paper seeks to support international evidence on such relationship and justifies the implementation of good corporate governance practices in listed Colombian companies. For this, a non-linear principal component analysis and the generalized method of moments are jointly implemented. In this exercise, the complex dimensions of corporate governance are deduced from its local relations and, then, their relationship with financial performance indicators ROA and Tobin’s Q is assessed.
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