Abstract

ESCOBAR-VAQUIRO, Natalia; BENAVIDES-FRANCO, Julián  and  PERAFAN-PENA, Héctor Fabio. Corporate Governance and Financial Performance: Theoretical Concepts and Empirical Evidence. Cuad. Contab. [online]. 2016, vol.17, n.43, pp.203-254. ISSN 0123-1472.  https://doi.org/10.11144/Javeriana.cc17-43.gcdf.

The purpose of this document is to structure an analysis framework for the study of the corporate governance practices and their effect on the financial results, taking into account theoretical and empirical studies in developed and developing countries, mainly in Latin America, with a particular emphasis in Colombia. Corporate governance practices have become an essential element in the theory of the firm studies, since they provide managers and owners with mechanisms that allow for the establishment of regulations aimed at minimizing conflicts of interests, with the resulting improvement and transparency in decision making and, thus, increasing the financial performance levels. Based on the documental analysis methodology proposed by David Papineau, we found a significant evolution and convergence in terms of national and international regulations related with corporate governance practices and their relationship with performance, with a highlight on its emerging effect in Colombia and in other developing countries. Among the most relevant results we found the need to address the corporate governance practices and their impact on the financial returns of firms from a multi-theoretical approach, and also to identify the problem caused by endogeneity between financial performance and corporate governance for empirical research.

Keywords : Corporate governance; financial performance; agency theory; stewardship theory; Latin America; Colombia.

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