Research On The Relationship Between Corporate Governance Level And Financial Performance Of Mongolian Listed Companies

Recent economic and social developments have increased attention given to the role that good governance plays in achieving social and economic development. Corporations with good governance typically make better decisions, perform better, and find easier way to obtain funding resources. Furthermore, it will help to improve Mongolian economic development. But Corporate Governance this "concept" is a quite new one and research on this subject made is few in a field of Mongolian Listed Companies. One of the best way to measure good Governance is Information Transparency and Disclosure. Financial Performance takes the most part of it. That’s why there’s a necessary to research on relationship between the Corporate Governance Level and Financial Performance.The purpose of this paper is to research on relationship between the Corporate Governance Level and Financial Performance by using regression analysis, to identifying that companies financial performance impact on Corporate Governance level or higher Corporate Governance Level impact on financial performance of Mongolian Listed Companies. And made evaluation of Governance Index of Mongolian TOP-20 Listed Companies. Then by choosing two companies which has the highest Governance Index, made financial statement analysis to prove regression analysis result. In addition, included with surveys among these companies to clarifying current situation of Governance Level of Mongolian Listed Companies.This case study result shown that good Corporate Governance Level impact on Financial Performance. This means, the company enhancing Corporate Governance Level can increase the company’s value such as Financial Performance. Besides this, survey data analysis shown that Mongolian Listed Companies Governance Level is not enough and in conclusion we suggested some recommendations to improve better Governance Level. Particularly, this case study would be useful for those listed companies which are suffering to face Governance problems.