Abstract:
Corporate governance can be defined as the scheme by which corporations are
directed and controlled. The objective of this exploration is to inspect the
impact of corporate governance tools on firm performance using data of 12
banks in Sri Lankan banking industry over the period of 2006-2015 based on
the 120 observations. This study has used only secondary data and main source
of data contain of the annual report of the specific banks. Return on Equity
(ROE) is used as reliant on variable to the model. Further Firm Leverage,
Firm size, Number of Auditors, Board Independence and Board Size used as
independent variables to the model. Researcher placed panel data approach as
a way of appraisal. Descriptive statistics, ANOVA and t-test applied on data
by using SPSS. Findings are based on Correlation techniques and Regression
analysis to test the hypotheses to solve the research problem Based on the
observed results, Researcher found that there is a considerable significant
impact of corporate governance on Performance of the banking industry in Sri
Lanka while recognizing the Negative correlation ship between bank
performance with Firm leverage, Firm size and board size and also identifying
the significant relationship between Firm size, Number of auditors, board
independence and Board size.
