Does Good Corporate Governance Improve Financial Performance: A Systematic Literature Review

Abstract

This study investigates the impact of Corporate Governance on financial performance, identifying robust governance framework such as independent oversight, transparency and ethical leadership. The researcher used to systematic literature review approach analyze the study and conducted a qualitative systematic literature review of 96 research papers published between 2014 and 2026, incorporating both global and India-specific perspectives. The study reveals a significant impact of corporate governance on financial performance, driven by enhanced decision-making, reduced agency conflicts and increased stakeholder trust. This review also confirms that effective corporate governance practices are essential for balancing profitability with accountability, thereby fostering organizational stability and attractiveness to investors within the corporate sector.