Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Dr. Rohan Mehta, Ms. Emily Carter

Abstract: Corporate governance plays a crucial role in shaping firm performance and investor confidence. This paper examines the mechanisms through which governance practices—such as board structure, ownership concentration, transparency, and accountability—influence financial outcomes and market trust. It analyzes empirical studies and case examples to highlight the impact of strong corporate governance on operational efficiency, risk management, and shareholder value. The study also investigates how investor perceptions of governance quality affect capital inflows, stock performance, and long-term firm sustainability. Findings suggest that effective corporate governance enhances both firm performance and investor confidence, emphasizing the importance of robust governance frameworks in modern business environments.

Keywords: Corporate Governance, Firm Performance, Investor Confidence, Board Structure, Ownership Concentration, Transparency, Accountability, Shareholder Value