Assessing the influence of Corporate Governance on organizations Profitability: A study on four industries of Bangladesh

Abstract

The term ‘Corporate governance’ includes precise matters of the interactions between shareholders, top management, the board of directors, and other corporate investors. Decent practice of corporate governance in a corporate structure can take a organization to maximizing shareholder worth in a lawful, moral, and maintainable manner and it also ensures fairness and transparency for all stakeholders. Subsequently, corporate governance will guide and encourage the association to take advantage of it. Although Bangladesh's corporate governance has received widespread consideration from global experts and administrative agencies, the business sector is still in its infancy. Bangladesh is small in size and lacks conventional resources, so it needs to adopt an open trading strategy. Bangladesh also has broad agreements for foreign direct investment (FDI). However, compared to companies in India, Sri Lanka, Pakistan, Thailand and Malaysia, corporate governance and inference are still at a moderately immature level in Bangladesh so far. The purpose of the inspection was to investigate the impact of corporate governance on productivity by selecting 20 companies from 4 Bangladeshi industries and found that corporate governance factors had little effect on earnings indicators. However, the exam also provided some suggestions for improving the implementation of inadequate corporate governance so that the organization can also increase its Profitability and productivity.