ABSTRACT
Various studies have attempted to probe the relationship between corporate governance and a firm’s performance. Unfortunately, most of the academic questions are yet to be answered satisfactorily. Questions examined include: Is one model (shareholder or stakeholder) of corporate governance better than the other? What are the benefits and costs associated with the different kinds of governance models in existence? The existing studies do not provide clear answers about whether the corporate governance standards adopted are positively or negatively affecting the firm’s performance. Some of the studies indicate that poor governance accounts for much of the inefficiency in service provision in health care systems (Lewis and Petterson 2009).
