Corporate governance and small and medium sized enterprise performance: evidence from Bangladesh
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This study examines corporate governance mechanisms and firm performance in small and medium sized enterprises (SMEs) in Bangladesh. From an observation of 769 firm years it is found that firm performance has significant positive relationship with: largest blockholding, executives' pay and debt ratio under market based performance measure in Bangladeshi SME. Whilst it is found that there is a significant negative relationship between debt to equity ratio and firm performance under ROA performance measure, but no relationship is found between other corporate governance variables with SME's performance under any of the measures. The findings imply that the underlying differences among SMEs give rise to a further consideration for good corporate governance practices. This study extends the literature on corporate governance and firm performance of SMEs in the context of a less developed country.