Corporate Governance and Financial Performance in Modern Organizations

Authors

Dina Rizkia Dewi Universitas Diponegoro, Semarang

DOI:

https://doi.org/10.54518/fid.2.2.2024.1284

Keywords:

Corporate Governance, Financial Performance, Organizational Accountability, Governance Mechanisms, Board Effectiveness

Abstract

Corporate governance plays a critical role in enhancing organizational accountability, strengthening oversight mechanisms, and improving financial performance. This study examines the relationship between corporate governance and financial performance in modern organizations through a qualitative Systematic Literature Review (SLR) guided by the PRISMA 2020 framework. Relevant studies published between 2019 and 2023 were collected from major academic databases and analyzed using thematic synthesis. The findings indicate that effective governance mechanisms, including board effectiveness, accountability structures, transparency practices, and risk oversight systems, contribute positively to organizational performance and long-term value creation. The review also highlights the growing importance of governance in supporting organizational sustainability, stakeholder engagement, and responsible business conduct. Furthermore, digital transformation is reshaping governance practices through enhanced monitoring, transparency, and decision-making capabilities. The study concludes that corporate governance serves as a fundamental driver of financial performance and sustainable organizational success.

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Published

2024-12-30

How to Cite

Dewi, D. R. (2024). Corporate Governance and Financial Performance in Modern Organizations. Finance Innovations Digest, 2(2), 135–154. https://doi.org/10.54518/fid.2.2.2024.1284