Abstract:
Corporate governance is a highly discussed topic which received the attention of corporate world during the last decade due
to the paramount importance embodied within it for the company performance and stability. Basically corporate governance
means the set of rules by which management of the company is directed and controlled. It attempts to ensure that managers
and other insiders of an organization take measures or adopt mechanisms to safeguard the interest of stakeholders. With the
global financial crisis which affected many of the world business giants, companies are highly concerned to improve their
corporate governance practices and therefore today researchers also have a great awareness to carry out researches in this
area. However currently in Sri Lanka context less researches available on Corporate Governance. This study focuses on
“Corporate Governance and Company Performance” considering all Beverage, Food and Tobacco companies listed in
Colombo Stock Exchange as at December 2013. Data was analyzed using the data of financial year 2012/13. Data was
analyzed using SPSS statistical software and hypothesis were tested performing descriptive statistics, correlation analysis
and regression analysis for collected data. According to the findings of the research corporate governance does not make a
significant influence on companies ROE, ROA and EPS. Thus, study concludes that the determinants of corporate
governance used in the study are not correlated to the performance measures of the organization.
