Corporate Governance refers to the way an organization is directed, administrated or\ncontrolled. It includes the set of rules and regulations that affect the manager's decision and\ncontribute to the way company is perceived by the current and potential stakeholders. The\ncorporate governance structure specifies the distribution of rights and responsibilities among\ndifferent participants in the corporation such as; boards, managers, shareholders and other\nstakeholders and spells out the rules and procedures and also decision-making assistance on\ncorporate affairs. Corporate governance practices in Bangladesh are gradually being\nintroduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen\nbehind its neighboring countries and global economy in corporate governance (Gillibrand,\n2004). Corporate governance structure is mainly considered ambiguous. Specific governance\nstructures or practices will not necessarily fit all companies at all times. Firms with strong\ncorporate governance mechanisms are generally associated with better financial performance,\nhigher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a\nlittle information about how these corporate values affect the performance of the\nMultinational Companies (MNCs). This study aims to provide a quantitative contribution to\nthe literature by examining the impact of corporate governance mechanisms on financial\nperformance from the perspective of MNCs. A panel data based Ordinary Least Squared\n(OLS) regression model was used to measure the quantitative significance of various\ncorporate governance related variables on MNC performance, as identified through a detailed\nliterature review.
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