Corporate Governance Mechanisms and Their Impact on Financial Performance: A Study of EGX Listed Companies

This study investigates the relationship between corporate governance characteristics and financial performance among firms listed on the Egyptian Stock Exchange (ESE) across eleven sectors during the period 2019–2023. The study focuses on six key governance dimensions: board independence, gender diversity on the board, CEO-Chairman duality, audit committee independence, audit committee experience, and ESG (Environmental, Social, and Governance) reporting. A total of 50 firms provided a sample of 250 observations, analyzed using multiple linear regression with STATA 15. Results revealed that board independence and audit committee independence have a partially positive impact on financial performance, particularly on Return on Assets (ROA) and Net Profit Margin (NPM). Female representation on the board significantly enhanced all financial indicators (ROA, ROE, NPM), while CEO duality and audit committee experience showed no significant influence. ESG reporting demonstrated a positive effect on ROA but not on ROE or NPM. These findings offer insights for policymakers and investors seeking to improve governance and financial outcomes in emerging markets.