CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE: A STRATEGIC PERSPECTIVE

Corporate governance has become a fundamental pillar of modern business management, influencing organizational transparency, accountability, ethical decision-making, and long-term financial performance. As businesses operate in increasingly complex and competitive environments, effective governance structures are essential for protecting shareholder interests, strengthening stakeholder confidence, and ensuring sustainable organizational growth. Corporate governance encompasses the systems, principles, and practices through which organizations are directed, monitored, and controlled. Strong governance frameworks improve strategic decision-making, reduce agency conflicts, enhance risk management, and promote financial stability. This review paper examines the relationship between corporate governance and financial performance from a strategic perspective by discussing governance principles, board effectiveness, ownership structures, risk management, corporate ethics, regulatory compliance, and sustainability. The paper also highlights contemporary challenges and emerging trends in governance practices. The findings indicate that organizations implementing sound corporate governance achieve higher profitability, improved operational efficiency, greater investor confidence, and stronger long-term competitiveness.