Abstract:
The research will focus on the Impact of Corporate Governance practice on
Firm financial performance in listed manufacturing firms in Sri Lanka. The
study is base on the research question “Do corporate governance practice
contribute to firm’s performance significantly in listed manufacturing firms in
Sri Lanka”. The main objective of the study is to investigate the impact of
corporate governance practices on firm’s performance. Thirty one listed
manufacturing firms in Colombo Stock Exchange were selected as sample size
for the periods of 2008-2012. Correlation and coefficient is measured the
strength and direction of the relationship between two variables. Finding
revealed that there is no any relationship between the firm performance among
board size and CEO Duality practices. Further findings disclosed that there is
a positive relationship between executive compensation disclosure
transparency and firm’s performance. Based on analyzed data the study found
that there is no any relationship between corporate governance and firm’s
performance. This study is recommended that the corporate governance
practices should be reviewed in reliable way in Sri Lankan context.
