EFFECT OF CORPORATE GOVERNANCE ON PROFITABILITY OF THE LISTED TEXTILE COMPANIES IN BANGLADESH

Abstract

Corporate governance is a buzz-word in corporate world now a day as it is viewed a moral duty. It involves promoting the corporate governance and the profitability effect by it. The relationship between corporate governance and profitability has caught wide attention of researchers in the last decade. In this article we showed the effect on corporate governance on profitability of the textile industryin Bangladesh. In Bangladesh the textile industry plays an actual role in the economy. This is one of the largest industries in Bangladesh in terms of foreign earnings, employment generation, and industrial revolution. This paper‘s main purpose is the textile sector‘s profitability based on their corporate governance.The objective of this study has been to review the concept as is the problems being faced, its implication on firm profitability, beingpracticedandperformance and lastly, to see its relevance in the context of Bangladesh, where the listed firms had the effect of their corporate governance on their profitability. And to understand up to what part textile sector has used their available resources effectively. That‘s why here profitability and corporate governance‘s tools are used of the textile companies. Here in this paper comparative, descriptive and regression analysis has used to know the effect of corporate governance in the textile companies. The result shows the profitability has positive and also negative influence by the corporate governance tools.