An exploratory analysis of corporate governance using supervised data mining learning

Abstract

The corporate governance is a much discussed issue among the corporate and regulators. With the time and advancement in information and technology, the methods of investigations in the field have also changed for the better and accurate outputs. The study primarily investigates the nature and effect of good corporate governance on the firm’s financial performance using data mining analysis. For the investigation the board meetings and board remunerations are taken as the components of corporate governance whereas firm performance is a depended variable which is measured by return on capital employed (ROCE), return on equity (ROE), and return on assets (ROA). The study results are suggestive of a positive and significant relationship between board meetings and the firm performance whereas the board remuneration has no impact over the firm performance.