Year of Graduation
Analysis of Relationship between Corporate Governance Quality and Firm's Perfomance during Volatile Economic Conditions in UK
Double degree programme in Economics of the NRU HSE and the University of London
This paper analyses the relationship between the quality of corporate governance and firm’s performance during volatile economic conditions in UK. We study how the approach to the analysis of corporate governance has changed over time and develop methodology compatible with today’s realities. We further investigate a sample of 50 UK companies listed on FTSE100 index, discover that there is a significant relationship between the quality of corporate governance, delta revenue growth rate and dependent variable delta ln(Tobin’s Q), as a proxy of change of corporate performance. We also find no significant relationship with control variables like delta ln(Total Assets), delta ln(Trade Volume), delta Leverage and delta Net Income/Total Assets and industry dummies. We analyse the shortcomings of the study and propose areas for further improvements.