Does good corporate governance matter? Best practice in Poland

Abstract

Purpose – The purpose of this paper is to investigate the relationship between compliance with corporate governance best practice and corporate performance within Poland.Design/methodology/approach – The analysis is based on the regression of corporate governance compliance rating and corporate performance on a sample of Polish public listed companies for years 2004‐2006.Findings – The research indicates that complying with corporate governance best practice in Poland is associated with lower return on investment (the whole sample). However, the tendency changes into negative but statistically insignificant for the second and third years, and positive but statistically insignificant when only rated companies are included in the research sample. The relationship between proxy of Tobin's q and corporate governance rating remains statistically insignificant and is negative for the whole sample and positive for first and third year as well as for rating companies.Research limitations/ implications – The next ...