Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa:: Science Publishing Group

Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa

Mikiyas Nigussie Jobir

Department of Accounting and Finance, Dire Dawa University, Drie-Dawa, Ethiopia

International Journal of Health Economics and Policy, Volume 8, Issue 3, September 2023

Pages: 62-69

Received: Mar. 10, 2023

Accepted: Jun. 29, 2023

Published: Jul. 08, 2023

DOI: 10.11648/j.hep.20230803.12

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Abstract

This study focused on the impact of corporate governance on the financial performance of manufacturing companies in Dire Dawa, Ethiopia over a 13-year period from 2007 to 2019. As a result, there was a lack of documented literature. The overall purpose of this study was to examine the impact of corporate his governance practices on the financial performance of Dire Dawa limited liability companies. The research design used in this study aims to clarify the causal relationship between the attributes of corporate governance and the variables of corporate performance (ROE) in the manufacturing industry. Research design. The dependent variable used to measure the financial performance of manufacturing companies is return on equity. The researcher considered five public companies in the study, and the total number of public manufacturing companies was obtained from his ERCA subsidiary, Dire Dawa. Board information was obtained through a structured questionnaire as directors or board secretaries are well positioned to express their views on corporate governance issues. Budgets were collected from all production companies. This study used a panel data analysis method to draw conclusions about the study. The survey found an average board size of 8 members, an average management experience per director of 4, an average audit committee board size of 4, and an average ownership concentration of 71.21%. Empirical results indicate plate size; a director's experience in the areas of corporate governance and shareholder concentration has a significant positive impact on the bottom line of a productive company. Finally, the study recommends that shareholders prioritize board size, board experience in running the company, and shareholder concentration.

Keywords

Corporate Governance, Financial Results, ROE, ROA, NIM, Dire Dawa, Ethiopia

To cite this article

Mikiyas Nigussie Jobir. (2023). Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. International Journal of Health Economics and Policy, 8(3), 62-69. https://doi.org/10.11648/j.hep.20230803.12

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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