Corporate Governance Practices and Its Impact on Financial Performance of the Family Managed Medium Size Firms

Abstract

Corporate governance is about managing the business of the organization in a way which promotes transparency and fair business. According to the American Management Association, "Corporate governance is about relationship between managers of organization, directors, providers of capital, institutions etc who invests in company”. It helps in ensuring that business is managed in the ethical manner. Effective corporate governance not only helps in defining, implementation and monitoring company's objective but also helps in providing a structure that will ensure accountability to the stakeholders involved in the organization. Therefore our paper focuses on importance of corporate especially for the family managed medium sized firms.