CORPORATE GOVERNANCE, CORPORATE SOCIAL RESPONSIBILITY AND BUSINESS PERFORMANCES. A GLOBAL PERSPECTIVE

Abstract

The aim of this paper is to investigate the effects of
 corporate governance quality and corporate social
 responsibility on business performances of the companies
 around the world countries. Using a cross-sectional
 sample covering 77 countries over the period
 2012-2015, our research provides empirical evidences
 that corporate governance and corporate social
 responsibility have a significant effect on the business
 performances. Moreover, we found that, this influence is
 more sharply felt on the market values of the companies
 which activate in developing countries compared to
 those from developed ones. The investors in developing
 countries pay a premium of 25.4% for the companies
 with effective corporate governance and 41.9% for the
 companies which adopt corporate social responsibility
 in theirs activities. This premium is slightly reduced for
 developed countries where it can be up to 24.5% of
 market capitalization.