Corporate Governance and Firm Performance in Egypt

Corporate governance mechanisms are formed of different building blocks; the board of directors and audit committees are considered to be of the main ones. Nowadays, there has been a significant change, worldwide, in the guidelines and relationships connecting the shareholders, the boards, and the corporate management. The size of foreign investment attracted to Egypt, being an evolving market, has been growing in the past ten years. Corporate governance quality and firm performance are considered among the most important factors for investors in the Egyptian market. This research investigates the influence of board of directors and audit committee characteristics on the firm¿s financial performance. Nine attributes have been revealed from the literature review that might affect the improvement of a firm¿s financial performance. This research contributes to the literature regarding how corporate governance improves a firm¿s financial performance in Egypt.