Impact of Corporate Governance on Firm Value: Evidence from Non-Financial Listed Companies in Emerging Markets

Abstract

This research examines the linkage between governance frameworks and enterprise valuation by utilizing information drawn from publicly traded companies operating within a developing market environment. A longitudinal panel dataset spanning 2015 to 2023 is assessed using both fixed-effects and random-effects econometric models. Organizational performance is measured using market-oriented (Tobin’s Q) alongside accounting-based (Return on Assets) metrics. The empirical outcomes reveal that governance characteristics—especially the proportion of independent directors and the level of institutional shareholding—are positively related to firm valuation. Conversely, higher financial debt is associated with a decline in value, indicating greater exposure to financial risk. These results emphasize the significance of robust governance systems in improving corporate performance and provide actionable implications for regulatory authorities, investors, and corporate decision-makers.