Relationship between Corporate Governance and Firm Performance: An Introspection of Empirical Evidences in search of a Solution

In the complex global business environment, the relationship between corporate governance and firm performance has got much attention in recent times. The key question the study aims to address is whether there has been any consensus between corporate governance and firm performance based on accounting and market -based measures. The findings of our review can be characterized as being unable to reach a consensus regarding the nature of the said relationship. However, majority of the studies in our review suggests a significant positive relationship between corporate governance and various dimensions of firm performance, while there are some studies that have questioned the aforesaid relationship. This calls for more in-depth research in this area. For a deeper insight into the problem, the said relationship may be examined between corporate governance index and firm performance index in order to capture the influence of several mechanisms of corporate governance and firm performance.