This study explores how corporate governance practices affect the financial performance of multinational companies (MNCs) operating in Bangladesh. It uses annual secondary data covering 14 multinational companies listed on the Dhaka Stock Exchange (DSE) from 2013 to 2024. Corporate governance is represented by factors including the number of board members and the level of independence, managerial ownership, foreign ownership and ownership concentration. Financial performance indicators are assessed through Tobin’s Q and return on assets (ROA). Moreover, firm size, firm age, earnings per share (EPS), leverage and the unemployment rate are incorporated as control variables. The panel-corrected standard errors (PCSE) model is applied for handling cross-sectional correlation, heteroskedasticity and autocorrelation issues. In contrast, Driscoll–Kraay standard errors are used to validate the soundness, reliability and robustness of the results. The results of the study demonstrate that larger boards, concentrated ownership and foreign ownership improve firm performance of DSE-listed MNCs. Board independence positively affects Tobin’s Q but no significant relationship is observed between managerial ownership and firm performance. Among the control variables, leverage and EPS positively influence firm performance, firm size increases ROA but lowers Tobin’s Q, and firm age significantly affects ROA, while unemployment rate shows no significant impact. The findings highlight that corporate governance significantly influences the performance of multinational companies operating in Bangladesh and provide implications for managers, investors, regulators, and policymakers, particularly in shaping ownership strategies, board composition, and legislative reforms to promote sustainable value generation.
Munmun et al. (Wed,) studied this question.