Under corporate governance, organizations articulate corporate values, codes of conduct, and standards of appropriate behavior etc., and develop systems, procedures, and controls to ensure compliance with them. The core management team sets the strategic objectives, corporate values and specifies transparent lines of responsibility and accountability. Performance of a firm is measured by valued based performance measures – economic Value added and market value added. These values are expected to create value to the firm and to the shareholders. In this article, annual reports and using panel regression models were used to determine the effects of explanatory variables on the financial performance of IT sector. It is concluded that corporate performance influence both Economic Value and Market Value
But it has more influence on Economic Value of the company which reveals that corporate governance influences significantly how well a company produced value for its investors than the company has managed to create value on corporate success.
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