| dc.description.abstract | Purpose: The main purpose of this study is to find the extent of
corporate governance practice impacting profitability of the
manufacturing companies in Bangladesh.
Methodology: To investigate the impact, 103 firm-years have been used
as a sample from the manufacturing sector of Bangladesh. Besides,
Pooled OLS robust regression models have been used here to analyze.
Findings: The regression result shows that there is a significant positive
relationship between female directors in the board and ROE of the
company, and a significant negative relationship between family
dominance in the board and ROE of the company. But the result does not
show any significant relationship between corporate governance practices
and ROA. However, there is a significant positive relationship between
female directors in a board and EPS, and audit firm quality and EPS of
the firm. There is also a significant negative relationship between family
dominance in the board and EPS.
Limitations: The study is limited to some fixed industry data and time
period and the results can vary if time period and industries are changed.
Practical Implications: In the paper, empirical evidence suggests that
corporate governance mechanisms can be used as effective tools to
improve performance of the firms, and it can help the policy makers and
regulators to set regulations in the developing countries like Bangladesh.
Originality/Value: The uniqueness of the paper is the industry setting,
as most of the researches use the banking sector, a very highly
regularized sector, to show the effect. The study has used information
from manufacturing industry and it also has used more variables than the
variables used in previous studies to define corporate governance. | en_US |
