Relationship between Good Corporate Governance and Financial Performance

Abstract

Good corporate governance has multiple impacts on stakeholders, the environment, and society. There are many ways to define good corporate governance. In this study, we try to define good corporate governance in Mongolian listed companies and find that companies with good governance led to good financial performance. An empirical analysis is made based on the 2016-2020 audited reports regarding some of the corporate governance and financial performance indicators of the first and second classification joint stock companies of the Mongolian Stock Exchange. The result of this study concludes that good corporate governance has a positive effect on financial performance.