Corporate governance practices and firm performance measured bycroatian corporate governance index (Ccgi®)

Abstract

The area of corporate governance (CG) determines the way in which a corporation is managed and monitored. The purpose of this article is to investigate whether there is a correlation between company performance and CG practices, while the general objective is to set up regression models of the company success measured by Tobin’s Q and CG practices measured by Croatian Corporate Governance Index (CCGI®). Data used for processing the topic were from secondary sources, mostly books and articles, as well available annual questionnaires of CG codex for the period from 2007 to 2010. Results obtained in this research indicate that CG is an important factor in explaining the business performance of Croatian companies included in the official share index of the Zagreb Stock Exchange (ZSE) CROBEX® (Croatian equity index).